Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Employment and Economic Development
Federal Compliance Audit

 

Financial Audit Division Report 12-05 Released March 23, 2012

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 2011. However, the department had weaknesses, as noted in the six findings presented in this report, including one repeat finding from last year’s audit that the department did not fully resolve. In addition, the department had another prior audit finding that was not resolved and was included in our audit of the State of Minnesota’s internal controls over financial reporting.

Key Findings

  • 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.
  • The Department of Employment and Economic Development did not adequately control supply and equipment purchases for clients participating in Vocational Rehabilitation programs (CFDA 84.126 and 84.390).
  • The Department of Employment and Economic Development paid for some costs incurred after the end dates of an employer grant agreement and a client employment plan for the Vocational Rehabilitation Cluster.
  • The Department of Employment and Economic Development did not retain evidence of monitoring two subrecipients for the Workforce Investment Act Cluster.

Audit Scope

Our scope included programs determined to be major federal programs for the state of Minnesota for fiscal year 2011, including Unemployment Insurance, Workforce Investment Act Cluster, and Vocational Rehabilitation.

More Information

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