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 13-08 Released May 23, 2013

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 2012. However, the department had weaknesses, as noted in the six findings presented in this report, including two repeat findings from last year’s audit that the department did not resolve.

Key Findings

  • Prior Finding Not Resolved: The Department of Employment and Economic Development did not monitor grant recipients for the Workforce Investment Act Cluster and a scanned copy for one grant agreement was incomplete.
  • The Department of Employment and Economic Development paid expenses totaling $213,660 after the federal period of availability for two unemployment insurance grant awards.
  • The Department of Employment and Economic Development overcharged the federal unemployment insurance program for $77,088 of indirect costs.
  • Prior Finding Not Resolved: The Department of Employment and Economic Development did not identify and recover $24,500 of overpaid unemployment insurance benefits to four applicants.

Audit Scope

Our scope included programs determined to be major federal programs for the State of Minnesota for fiscal year 2012, including Unemployment Insurance, Workforce Investment Act Cluster, and Vocational Rehabilitation Cluster.

More Information

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