State of Minnesota Office of the Legislative Auditor _________________________________

1
State of MinnesotaOffice of the Legislative
Auditor_________________________________

• Overview Presentation
• for
• State Government Finance Committee
• House of Representatives
• State of Minnesota
• February 1, 2011

2
OLA History ___________________________

• Created in 1973
• Recommendation of the Loaned
  Executive Action Panel (LEAP)
• Modeled after the Government Accountability
  Office (GAO)
• Post audit and oversight is a
  legislative branch responsibility

3
OLA Mission ___________________________

• Strengthen accountability and legislative
  oversight
• Promote strong financial management and
  cost-effective administration of organizations
  and programs funded with public money

4
OLA Work Products ___________________________

• Compliance and Control Audits
• Financial Statement Audits
• Information Technology Audits
• Evaluations
• Investigations

5
OLA Principal Goal___________________________

• Ensure that every OLA report is accurate,
  objective, timely, and useful

6
OLA Standards___________________________

• Generally Accepted Auditing Standards
• Require fact verification, documentation,
  internal and external review
• Independence Standards
• Require both organizational and individual
  independence

7
OLA Jurisdiction ___________________________

• State Executive Branch
• State Judicial Branch
• State-Funded Programs
• Three Metropolitan Organizations
• Quasi-Government Organizations
• Public Money

8
OLA Authority___________________________

• Cooperation with OLA required by law, but OLA
  also has subpoena authority
• OLA has access to all documents and data related
  to the use of public funds
• Legislative Auditor may take testimony under oath

9
OLA Organization___________________________

• Legislative Audit Commission (bipartisan, 12
  members)
• Commission appoints Legislative
  Auditor (6-year term)
• Office of the Legislative Auditor
• Financial Audit Division (FAD)
• Program Evaluation Division (PED)

10
OLA Staffing___________________________

• Legislative Auditor
• Deputy Legislative Auditor (FAD)
• Financial Auditors (38)
• Evaluators (13)
• Investigator
• Administrative Support Staff (4)
• Information Technology Staff (3)

11
OLA Funding___________________________

• Fiscal year 2011 General Fund appropriation to
  OLA approximately 5.8 million
• Approximately 1.2 million will be returned to
  the General Fund through indirect cost
  allocations and direct billings for OLA audit
  services

12
OLA Challenges/Response________________________
___

• Challenges
• Retaining experienced staff
• Providing adequate audit coverage
• Response
• Emphasize commitment to OLA mission
• Deploy staff strategically