State agencies have fully or partially resolved 96% of OLA recommendations tracked over the past two years.

ST. PAUL--Minnesota Management and Budget’s (MMB’s) Internal Control and Accountability unit today issued its biennial report to the legislature, showing advances in compliance with recommendations made by the Office of the Legislative Auditor (OLA) and in statewide internal control efforts.

MMB’s Internal Controls and Accountability unit (ICA) has continued working with state agencies, boards and commissions in 2023 and 2024, the years covered by the report, to strengthen internal controls and increase audit capacity.

Of the 247 total Legislative Auditor’s findings tracked in 2023 and 2024, 96% were fully resolved (66.4%) or partially resolved (29.9%), 3.2% were unresolved, and .4% were no longer valid because the programs they referenced no longer exist. Of the eight audit findings that were unresolved, most were due to the need for legislative action, information technology system upgrades, or resource constraints, or are awaiting the next contract cycle.

By comparison, in 2021 and 2022, of the 240 total Legislative Auditor's findings, 86% were fully (66.7%) or partially (19.6%) resolved and 13.8% were unresolved.

Looking just at financial audits, 99% of financial audit findings tracked in 2023-24 were fully or partially resolved, 90% in 2021-2022, 87% in 2019-2020, 75% in 2017-2018, and 77% in 2015-2016. Findings carry forward from one biennium to the next until they are resolved.

“The Legislative Auditor’s Office does important work, and this report shows state agencies’ diligence in making recommended changes to their operating procedures,” said MMB Commissioner Erin Campbell. "Protecting state resources and providing efficient, effective delivery of services is an absolute priority.

“We continue to work throughout the executive branch to test and strengthen our ability to prevent and detect fraud and waste,” Campbell said. “Across state government, we have increased the number of internal auditors and internal control professionals in the past four years. Ultimately, we want to bolster a culture of compliance at all levels of every agency.”

The new report details:

• ICA has established a new statewide internal audit office within it. This initiative was achieved with the hiring of an audit director and two lead workers in 2024. As part of that initiative, the ICA developed plans for an audit committee; created workpapers, a policy manual, and audit charter; and initiated a first audit.
• In 2023, the ICA worked with agencies, boards, and commissions to improve the risk assessment plan tool to better facilitate the documentation and implementation of risk mitigation projects. The revised tool allows agencies to focus on their strategic priorities, document specific risk mitigation projects, track timelines and progress, and integrate their own risk assessment methods.
• The ICA has also developed a community of practice to bring together internal audit directors and managers throughout state government to coordinate efforts, improve internal audit processes, share best practices, and provide a forum for training and idea sharing.
• The number of internal auditors and internal control professionals in the executive branch rose from 44 in 2020 to 82 in 2024.
• The ICA trained more than 1,200 new supervisors and managers in internal control and fraud prevention strategies.

Internal Controls 2025 biennial report 

Contact
Patrick Hogan, Enterprise Director of Communications and Marketing
Phone: 651-259-3737
Email: patrick.hogan@state.mn.us