Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit

Board of Electricity

For the Period July 1, 1996, through December 31, 1999

Key Findings and Recommendations:

• PRIOR FINDING PARTIALLY RESOLVED: The board's controls over license and inspection fees were inadequate. The board needs to adequately safeguard receipts by restrictively endorsing all checks immediately, and keeping all checks physically secure until deposited. In addition, the board should separate license and inspection fee checks from accompanying documentation and deposit receipts totaling $250 or more on a daily basis as required by Minn. Stat. Section 16A.275. (Finding 1, page 6)
• PRIOR FINDING PARTIALLY RESOLVED: The board did not effectively control access to computer resources and data within its licensing and inspection system. The board should limit each employee's computer access to the specific resources and data needed to fulfill the employee's job responsibilities. Super-visory security clearance privileges should be very limited and only provided to those individuals currently responsible for security. (Finding 2, page 6)
• PRIOR AUDIT FINDING NOT RESOLVED: The board did not void requests for electrical inspections as required by board rule. The board should comply with Minn. Rule 3800.3780 and void request for inspection certificates that are over 18 months old. (Finding 3, page 7)
• The board did not adequately segregate or control certain employee's access to the state's payroll and human resources data system (SEMA4). The board should have an employee independent of the payroll and the human resources function review payroll transactions for propriety. (Finding 4, page 11)

Financial-Related Audit Reports address internal control weaknesses and noncompliance issues found during our audit of the agency. The scope of work at the State Board of Electricity included license and inspection fees, payroll, and contracted inspection services. The board's response to our recommendations is included in the report.