Metropolitan Sports Facilities Commission
Financial Audit Division
The Office of the Legislative Auditor (OLA) is a professional, nonpartisan office
in the legislative branch of Minnesota State government. Its principal responsibility
is to audit and evaluate the agencies and programs of state government (the
State Auditor audits local governments). OLA's Financial Audit Division annually
audits the state's financial statements and, on a rotating schedule, audits
agencies in the executive and judicial branches of state government, three metropolitan
agencies, and several "semi-state" organizations. The division also investigates
allegations that state resources have been used inappropriately. The division
has a staff of approximately fifty auditors, most of whom are CPAs. The division
conducts audits in accordance with standards established by the American Institute
of Certified Public Accountants and the Comptroller General of the United States.
Consistent with OLA's mission, the Financial Audit Division works to:
Promote Accountability, Strengthen Legislative Oversight, and
Support Good Financial Management.
Through its Program Evaluation Division, OLA conducts several evaluations each
year and one best practices review.
OLA is under the direction of the Legislative Auditor, who is appointed for a six-year term by the Legislative Audit Commission (LAC). The LAC is a bipartisan commission of Representatives and Senators. It annually selects topics for the Program Evaluation Division, but is generally not involved in scheduling financial audits.
All findings, conclusions, and recommendations in reports issued by the Office of the Legislative Auditor are solely the responsibility of the office and may not reflect the views of the LAC, its individual members, or other members of the Minnesota Legislature.
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Table of Contents
Report Summary
Auditor’s Report on Compliance and on Internal Control
Status of Prior Audit Issues
Audit Participation
The following members of the Office of the Legislative Auditor prepared this report:
Claudia Gudvangen, CPA Deputy Legislative Auditor
Brad White, CPA, CISA Audit Manager
Patrick Phillips, CPA Auditor-in-Charge
George Deden, CPA Auditor
Titima To Auditor
Exit Conference
We discussed the results of the audit with the following representatives of the Metropolitan Sports Facilities Commission at an exit conference held on May 13, 2004:
Richard Jefferson Board Member Chair, Finance Committee
Bill Lester Executive Director
Mary Fox-Stroman Director of Finance
Linda Brennan Finance Assistant
Teri Portinen Finance Assistant
Report Summary
Key Conclusions:
We issued an unqualified opinion on the Metropolitan Sports Facilities Commission’s financial statements for the year ended December 31, 2003.
The report contained no findings related to internal controls or legal compliance.
Audit Scope:
Audit Period: The year ended December 31, 2003
Programs Audited:
Cash and Investments
Revenues
Expenses
Fixed Assets
Concessions
Agency Background:
The Metropolitan Sports Facilities Commission operates the Hubert H. Humphrey Metrodome stadium. It earned $41 million in operating revenues during fiscal year 2003 and had total assets of $61 million on December 31, 2003.
Report on Compliance and on Internal Control over Financial Reporting
Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards
Representative Tim Wilkin, Chair
Legislative Audit Commission
Members of the Legislative Audit Commission
Mr. Roy Terwilliger, Chair
Metropolitan Sports Facilities Commission
Members of the Metropolitan Sports Facilities Commission
Mr. William Lester, Executive Director
Metropolitan Sports Facilities Commission
We have audited the financial statements of the Metropolitan Sports Facilities
Commission as of and for the year ended December 31, 2003, and have issued our
report thereon dated April 19, 2004. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the Metropolitan Sports Facilities Commission’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Metropolitan Sports
Facilities Commission’s internal control over financial reporting in order
to determine our auditing procedures for the purpose of expressing our opinion
on the financial statements and not to provide assurance on the internal control
over financial reporting. Our consideration of the internal control over financial
reporting would not necessarily disclose all matters in the internal control
over financial reporting that might be material weaknesses.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce, to a relatively low
level, the risk that misstatements in amounts that would be material in relation
to the financial statements being audited may occur and not be detected within
a timely period by employees in the normal course of performing their assigned
functions. We noted no matters involving the internal control over financial
reporting and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the Metropolitan Sports Facilities Commission’s management and the Legislative Audit Commission and is not intended to be and should not be used by anyone other than these specified parties.
/s/ James R. Nobles /s/ Claudia J. Gudvangen
James R. Nobles Claudia J. Gudvangen, CPA
Legislative Auditor Deputy Legislative Auditor
April 19, 2004
Status of Prior Audit Issues
As of April 19, 2004
Most Recent Audit
The Office of the Legislative Auditor performs an annual audit of the Metropolitan Sports Facilities Commission. Legislative Audit Report 03-26, dated May 23, 2003, covered the year ended December 31, 2002. The audit scope included those areas material to the commission’s financial statements for the year then ended. There were no findings in the report.