Office of the Legislative Auditor - Financial Audit Division

State Agricultural Society
Financial Statement Audit

 

Financial Audit Division Report 08-16

Released June 13, 2008

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Conclusions

• The State Agricultural Society’s (society) financial statements for the two years ended October 31, 2007, were presented fairly in accordance with generally accepted accounting principles in all material respects.
• Generally, the society’s internal controls for selected financial operations were adequate.  However, the fair had one weakness related to controls over the receipt of foundation grants.
• The society complied with the finance-related legal provisions we tested.
• The society implemented a prior audit recommendation:  It strengthen controls over coliseum and grandstand ticket sales remitted by a contract vendor.

Findings

The society did not sufficiently monitor a receipt from the Minnesota State Fair Foundation.

Audit Objectives and Scope

Audit Objectives:

• To give an opinion on the society’s financial statements.
• To review internal control over selected financial operations.
• To determine compliance with finance-related legal provisions.
• To determine the status of a prior audit recommendation.

Audit Period: The two years ended October 31, 2007.

Programs Audited:

Cash and Cash Equivalents Revenue Bond Liabilities Entertainer Payouts and Other Expenses

Capital Assets Ticket Sales Payroll Expense

Background

The State Agricultural Society operates Minnesota’s annual state fair and maintains the state fairgrounds.  It earned about $35 million in operating revenues during fiscal year 2007 and had total assets of nearly $50 million on October 31, 2007.  The society included the activities of the State Fair Foundation in its annual report as a discretely presented component unit.