State of Minnesota Office of the Legislative Auditor

State of Minnesota Office of the Legislative Auditor _________________ Overview Presentation for State Government Finance Committee House of Representatives State of Minnesota February 1, 2011

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

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

OLA: Work Products ______________ • • • Compliance and Control Audits Financial Statement Audits Information Technology Audits Evaluations Investigations

OLA: Principal Goal ______________ • Ensure that every OLA report is accurate, objective, timely, and useful

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

OLA: Jurisdiction ______________ • • • State Executive Branch State Judicial Branch State-Funded Programs Three Metropolitan Organizations “Quasi-Government” Organizations Public Money

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

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)

OLA: Staffing ______________ Legislative Auditor Deputy Legislative Auditor (FAD) Financial Auditors (38) Evaluators (13) Investigator Administrative Support Staff (4) Information Technology Staff (3)

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

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