Report Summary
Department of Employment and Economic Development
Internal Control and Compliance Audit
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Financial Audit Division Report 10-31 |
Released September 23, 2010 |
Conclusion
The Department of Employment and Economic Development’s internal controls were generally adequate to ensure that it safeguarded state grant funds, accurately paid grantees in accordance with the appropriation laws and grant agreements, produced reliable financial data, and complied with finance-related legal requirements. For the items tested, the department generally complied with grant contracts, finance-related legal provisions, and its own internal policies. However, the department had some weaknesses in its internal controls and noncompliance with certain finance-related legal requirements.
Key Findings
- The Department of Employment and Economic Development did not adequately identify, analyze, and document its internal controls related to its grant expenditures.
- The Department of Employment and Economic Development did not ensure that a state-funded flood relief grant to the city of Rushford resulted in low interest loans only to businesses directly and adversely affected by the 2007 flood, as required by state law.
- The Department of Employment and Economic Development reimbursed some grantees for costs incurred before or after the time period specified in the grant agreement.
- The Department of Employment and Economic Development did not adequately monitor some grant financial activities.
Audit Objectives and Scope
| Objectives |
Period Audited |
- Internal Controls
- Legal Compliance
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July 1, 2007, through March 31, 2010 |
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| Programs Audited |
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