Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Employment and Economic Development
Federal Compliance Audit

 

Financial Audit Division Report 11-06

Released April 8, 2011

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Conclusion

The Department of Employment and Economic Development generally complied with and had controls to ensure compliance with provisions of laws, regulations, contracts, and grants applicable to the major federal programs we audited for fiscal year 2010. However, the department had weaknesses, as noted in the two findings presented in this report, including one repeat finding from last year’s audit that the department did not fully resolve.

Findings

• The Department of Employment and Economic Development did not identify and recover up to $3.2 million of estimated overpaid unemployment insurance benefits for the Federal Additional Compensation Program and $19,660 of other benefit extensions.
• Prior Finding Partially Resolved: The Department of Employment and Economic Development did not fully identify and monitor its internal controls to ensure compliance with federal requirements.

Audit Scope

Our scope included programs determined to be major federal programs for the state of Minnesota for fiscal year 2010, including Unemployment Insurance, Workforce Investment Act Cluster, and Vocational Rehabilitation.