Department of Economic Security
Fiscal Year Ended June 30, 1999
Key Findings and Recommendations:
- The Department of Economic Security did not provide adequate oversight to two vendors of the American Learning Exchange Grant (CFDA 17.207) to ensure these vendors complied with grant provisions. The Department did not receive timely progress reports and adequate documentation to support reimbursement requests totaling $840,000 in fiscal year 1999. We also noted certain overhead rates and fees submitted by the vendors were not specified in the grant agreement. We recommended improved oversight and clarification of overhead rates not specified in the grant agreements. (Finding 1, page 3)
- The Department of Economic Security and the U.S. Department of Labor have not resolved a potential funding usage issue for the Local Veterans Employment Representative (LVER) Program (CFDA 17.804). The two agencies do not agree whether time spent taking employer job orders is allowed under the LVER Program. We recommended that the department work with the federal government to revolve the personnel funding issue. (Finding 2, page 3)
- The department reimbursed certain Employment Services Program (CFDA 17.207) subgrantees for expenditures incurred after the grant period ended. We found that the department disbursed $113,681 to four subgrantees from August 1998 through January 1999 for work completed after the grant ended on June 30, 1998. We recommended better monitoring of subgrantee progress and extension of individual grant agreements when appropriate. (Finding 3, page 4)
Management letters address internal control weaknesses and noncompliance issues found during our annual audit of the state's financial statements and federally-funded programs. The scope of work in individual agencies is limited. During the fiscal year 1999 audit, our work at the Department of Economic Security focused on financial activities of the Reemployment Insurance Trust Fund and eight federal programs administered by the department. The department's response to our recommendations is included in the report.