2000 Minnesota Statutes

     3.972 Audits of agencies. 

    Subdivision 1.    Public accountant.  For the purposes 
 of this section, "public accountant" means a certified public 
 accountant, certified public accounting firm, or a licensed 
 public accountant licensed by the board of accountancy under 
 sections 326.17 to 326.229.  

    Subd. 2.    Audits of state and semistate agencies.  The 
 legislative auditor shall make a constant audit of all financial 
 affairs of all departments and agencies of the state, and of the 
 financial records and transactions of public boards, 
 associations, and societies supported, wholly or in part, by 
 state funds.  Once in each year, if funds and personnel permit, 
 without previous notice, the legislative auditor shall visit 
 each state department and agency, association or society and, so 
 far as practicable, 

    (1) inspect; 

    (2) thoroughly examine its books and accounts, verifying 
 the funds, securities, and other assets; 

    (3) check the items of receipts and disbursements with its 
 voucher records; 

    (4) ascertain the character of the official bonds for its 
 officers and the financial ability of the bonding institution; 

    (5) inspect its sources of revenue and the use and 
 disposition of state appropriations and property; 

    (6) investigate the methods of purchase and sale and the 
 character of contracts on public account; 

    (7) ascertain proper custody and depository for its funds 
 and securities; 

    (8) verify the inventory of public property and other 
 assets held in trust; and 

    (9) ascertain that all financial transactions and 
 operations involving the public funds and property of the state 
 comply with the spirit and purpose of the law, are sound by 
 modern standards of financial management and are for the best 
 protection of the public interest.  

    Subd. 3.    Audit contracts.  Notwithstanding any other 
 law, a state department, board, commission, or other state 
 agency shall not negotiate a contract with a public accountant 
 for an audit, except a contract negotiated by the state auditor 
 for an audit of a local government, unless the contract has been 
 reviewed by the legislative auditor.  The legislative auditor 
 shall not participate in the selection of the public accountant 
 but shall review and submit written comments on the proposed 
 contract within seven days of its receipt.  Upon completion of 
 the audit, the legislative auditor shall be given a copy of the 
 final report.  

    HIST: (3276) 1913 c 555 s 3; 1949 c 33 s 2; 1973 c 492 s 28; 
 1983 c 317 s 2; 1986 c 444; 1988 c 469 art 1 s 1; 1992 c 542 s 4