1. State of Minnesota Office 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