Iron Range Resources & Rehabilitation Board (IRRRB)
For the Three Years Ended June 30, 1993;
|Public Release Date: August 12, 1994
- Assess Internal Control Structure: Taconite tax receipts, mining company reimbursements, investment income, grant disbursements, loan issuances and repayments, and employee payroll.
- Test Compliance with certain Finance-Related Legal Provisions.
We found eight areas where the internal control structure needed improvement:
- The IRRRB has not expended $890,000 from a 1987 General Fund appropriation.
- The IRRRB departed from the grant guidelines without adequate justification.
- The IRRRB has not sufficiently controlled grants made from the Research and Planning Division.
- The IRRRB departed from its loan guidelines without establishing adequate justification.
- The IRRRB did not always adequately monitor delinquent bank participation loans.
- The IRRRB did not obtain board approval before allowing a foreclosed loan to be taken over by a third party.
- The IRRRB did not properly monitor certain aspects of a management service agreement.
- The IRRRB improperly reimbursed a contractor for certain expenses.
We found one departure from finance-related legal provisions:
- The IRRRB funded a project outside the taconite tax relief area.