Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Jobs and Training

Financial Audit

For the Year Ended June 30, 1993;

 

Public Release Date: June 17, 1994 No. 94-28

Objectives

Evaluate internal control structure for the following Programs: Food Distribution, Employment Services, Unemployment Insurance, Dislocated Workers, Job Training Partnership Act, Weatherization Assistance, Rehabilitation Services Basic Support, Low Income Home Energy Assistance Block Grant, Community Services Block Grant, Social Security-Disability Insurance.

Test compliance with certain finance-related legal provisions.

Conclusions

We found five areas where the internal control structure needed improvement:

  • DJT did not recover its full federal reimbursements for the Emergency Unemployment Compensation Program.
  • DJT does not have effective controls over Unemployment Insurance receipts, especially those processed by the cashier unit.
  • DJT is not accurately determining the accounts receivable balance for the Unemployment Compensation Fund financial statements.
  • DJT does not have an automatic sign-off control on terminals linked to its computer network.
  • Dislocated Workers Program staff did not have adequate accounting information to eliminate unauthorized borrowing.

We found six areas where the department had not complied with finance-related legal provisions:

  • DJT incurred a deficit in a federal account as a result of paying remodeling costs without sufficient resources.
  • DJT is maintaining excessive cash balances in its Unemployment Insurance Clearing Account.
  • DJT bank balances exceeded the collateral amounts authorized by statute.
  • DJT reported inaccurate information on the annual activity report for the Weatherization Assistance for Low Income Persons Program.
  • DJT improperly charged remodeling costs to the Unemployment Insurance program.
  • The department did not obtain prior approval for some administrative expenditures charged to three federal programs.

 

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155