# Office of the State Auditor *Minnesota state office that issues audit reports on local governments; the subject of two at-issue pairs concerning Sherburne County.* The Office of the State Auditor (OSA) is a [[Minnesota]] state office. In this record its published work consists of county management letters, a county management and compliance report, and an index of special investigations of local entities.[^1][^2] Its Carver County reports for fiscal years 2014 and 2016 record findings on ditch-system cash balances, an unrecognized liability and Medical Assistance case files.[^1][^2] Two at-issue pairs in the record concern Sherburne County. The first is a 2010 OSA audit finding that the county disputed. The second is the absence of an OSA special investigation of the 2025 Clear Lake embezzlement. The project anchors each pair to a March 2025 presidential action on fraud, waste and abuse.[^3][^4] ## Who The audited entities named in the record are three counties and one city. For Carver County, the pack holds OSA management letters for fiscal years 2009 and 2014 and a management and compliance report for the year ended December 31, 2016.[^5][^1][^2] The county also maintains its own audit archive.[^6] For Stearns County, the pack holds a 2022 OSA management letter. A dossier note records a negative result citing that letter alongside the county's procurement page.[^7][^8] Sherburne County was the subject of a 2010 OSA audit.[^9] According to the project's Sherburne brief, the [[City of Princeton]] is the only Sherburne-area entity in the OSA's index of special investigations.[^10] ## What ### Carver County, fiscal year 2014 The FY2014 management letter reports that Finding 2013-001 had been reported previously and was not resolved.[^1] It lists five ditch systems with negative cash balances totalling $69,907 and six with deficit fund balances totalling $157,563.[^1] It states: "The County is not in compliance with Minnesota statutes by having ditch systems with negative cash balances."[^1] Dossier notes on the letter cite Minn. Stat. §§ 103E.655 and 385.04 alongside it.[^11][^12] ### Carver County, 2016 The management and compliance report for the year ended December 31, 2016 records Finding 2016-001, an internal control material weakness. The finding concerns a $360,896 liability from a 2015 park land sale that had not been recognized. The report gives the cause as "An oversight in identification of amounts due to other governments."[^2] Finding 2016-002 is a federal compliance material weakness in Medical Assistance (CFDA 93.778). Of 40 case files tested, 8 showed asset discrepancies and 2 showed income discrepancies.[^2] A dossier note reviewing the 2014 and 2016 reports records that no fraud, embezzlement or misuse of funds was identified in any Carver County audit it reviewed.[^13] The same two documents carry the material-weakness and non-compliance findings set out above.[^1][^2] ## In the at-issue record ### Sherburne County audit, 2010 According to the project's Sherburne brief (pair AI-Sherburne-050), the OSA found in 2010 that eleven terminated Sherburne County employees still held active network access more than a month after leaving.[^9] The same audit carried a repeat finding: the county ran a "safe driving class" in lieu of issuing citations, which the [[state auditor]] found conflicts with [[Minn. Stat. § 169.022]]. The county disagreed.[^9] The pair is anchored to the March 2025 presidential action *Stopping Waste, Fraud, and Abuse by Eliminating Information Silos*.[^3] The pair states its rationale as "a repeat finding the audited party declines to accept is a control-environment finding."[^9][^3] ### Clear Lake embezzlement, 2025 The brief (pair AI-Sherburne-053) records that the 2025 Clear Lake embezzlement produced no OSA special investigation.[^10] According to the brief, the OSA's index lists roughly 130 special investigations since 1999, and the only Sherburne-area entity among them is the City of Princeton, in 2011.[^10] The pair is anchored to the March 2025 presidential action *Protecting America's Bank Account Against Fraud, Waste, and Abuse*.[^4] The pack does not carry the index itself. The record does not establish why no special investigation was opened.[^10] ## Notes [^1]: Minnesota Office of the State Auditor, *Carver County Management Letter FY2014* (fiscal year 2014) — Finding 2013-001 previously reported and not resolved; five ditch systems $69,907 negative in cash; six $157,563 in deficit fund balance; non-compliance with Minnesota statutes. https://www.auditor.state.mn.us/media/bljfq12z/carvercountyml_14_report.pdf [^2]: Minnesota Office of the State Auditor, *Carver County Management and Compliance Report* (year ended December 31, 2016) — Finding 2016-001, material weakness, $360,896 unrecognized liability from a 2015 park land sale; Finding 2016-002, federal compliance material weakness, Medical Assistance, CFDA 93.778, 8 of 40 case files with asset discrepancies and 2 with income discrepancies. https://www.auditor.state.mn.us/media/ru3fqh1t/carvercountyml_16_report.pdf [^3]: The White House, *Stopping Waste, Fraud, and Abuse by Eliminating Information Silos* (March 2025) — presidential action used as the anchor for pair AI-Sherburne-050. https://www.whitehouse.gov/presidential-actions/2025/03/stopping-waste-fraud-and-abuse-by-eliminating-information-silos/ [^4]: The White House, *Protecting America's Bank Account Against Fraud, Waste, and Abuse* (March 2025) — presidential action used as the anchor for pair AI-Sherburne-053. https://www.whitehouse.gov/presidential-actions/2025/03/protecting-americas-bank-account-against-fraud-waste-and-abuse/ [^5]: Minnesota Office of the State Auditor, *Carver County Management Letter* (fiscal year 2009) — FY2009 management letter on Carver County. https://www.osa.state.mn.us/media/zapljmpf/carvercountyml_09_report.pdf [^6]: Carver County, *Audit / Comprehensive Annual Financial Report* (county audit archive) — the county's own archive of audit reports. https://www.carvercountymn.gov/departments/property-finance/finance/audit-comprehensive-annual-financial-report [^7]: Minnesota Office of the State Auditor, *Stearns County Management Letter* (2022) — OSA management letter on Stearns County, cited in a dossier note recording a negative result. https://www.auditor.state.mn.us/media/ugxi3s1d/stearnscountyml_22_report.pdf [^8]: Stearns County, *Procurement* (county web page) — county procurement page cited alongside the 2022 management letter in the same dossier note. https://www.stearnscountymn.gov/1114/Procurement [^9]: Project at-issue pair AI-Sherburne-050, *Sherburne Fraud Nexus Brief* (pair year 2010) — OSA 2010 audit: eleven terminated employees with active network access; repeat "safe driving class" finding under Minn. Stat. § 169.022; county disagreed; flagged "ADJUDICATED: audit findings; DISPUTED by county." The pack carries no primary URL for this audit. [^10]: Project at-issue pair AI-Sherburne-053, *Sherburne Fraud Nexus Brief* (pair year 2011) — no OSA special investigation of the 2025 Clear Lake embezzlement; City of Princeton, 2011, the only Sherburne-area entry in an index of roughly 130 investigations since 1999; flagged "NEGATIVE FINDING." The pack carries no primary URL for the index. [^11]: Minnesota Revisor of Statutes, *Minn. Stat. § 103E.655* — statute cited in dossier notes alongside the Carver County FY2014 management letter. https://www.revisor.mn.gov/statutes/cite/103E.655 [^12]: Minnesota Revisor of Statutes, *Minn. Stat. § 385.04* — statute cited in dossier notes alongside the Carver County FY2014 management letter. https://www.revisor.mn.gov/statutes/cite/385.04 [^13]: Project dossier, *Chiefs Who Never Existed* steelman (2026-09-02), note 6 — no fraud, embezzlement or misuse of funds identified in any Carver County audit reviewed, citing the OSA 2016 and 2014 reports. https://www.auditor.state.mn.us/media/ru3fqh1t/carvercountyml_16_report.pdf ; https://www.auditor.state.mn.us/media/bljfq12z/carvercountyml_14_report.pdf