Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota Board of Water and Soil Resources
Internal Control and Compliance Audit

 

Financial Audit Division Report 10-18

Released May 27, 2010

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Conclusion

The Board of Water and Soil Resources’ internal controls were not adequate to ensure that it safeguarded its financial resources, accurately paid employees and vendors in accordance with management’s authorizations, complied with finance-related legal provisions, and created reliable financial data. For the items tested, the board did not consistently comply with significant finance-related legal requirements for financial activity.

Key Findings

• Prior finding not resolved: The Board of Water and Soil Resources did not design, implement, or monitor internal controls to ensure that the board fulfilled its financial management responsibilities.
• The Board of Water and Soil Resources did not fully implement Office of Grants Management oversight policies.
• The Board of Water and Soil Resources’ accounting practices compromised the integrity of its financial information in the state’s accounting system.
• Prior finding partially resolved: The Board of Water and Soil Resources did not adequately safeguard or promptly deposit its receipts.
• The Board of Water and Soil Resources did not obtain appropriate authorization for some expenditures.
• The Board of Water and Soil Resources did not retain adequate documentation to support some of its transactions.

Audit Objectives and Scope

Objectives	Period Audited
Internal Controls Compliance	July 1, 2007, through December 31, 2009
Audited Areas
Select administrative expenditures Appropriations and other funding Payroll expenditures	Grant expenditures Easement expenditures