Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Iron Range Resources & Rehabilitation Board (IRRRB)

Financial Audit

For the Three Years Ended June 30, 1993;

 

Public Release Date: August 12, 1994 No. 94-38

Objectives

  • 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.

Conclusions

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.

 

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