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 14-10 Released March 21, 2014

Conclusion

The Department of Employment and Economic Development generally complied with and had controls to ensure compliance with certain legal requirements applicable to its major federal programs for fiscal year 2013. However, the department had some internal control weaknesses and noncompliance with federal requirements, as noted in the findings presented in this report, including two unresolved findings from the prior audit.1

Key Findings

  • The Department of Employment and Economic Development did not effectively control equipment and maintain accurate equipment inventory records in the state’s accounting system. This is a repeat finding.
  • The Department of Employment and Economic Development did not adequately monitor subrecipients of grants from the federal Vocational Rehabilitation program. This finding includes a prior issue that was not fully resolved.

Audit Scope

Our scope included programs determined to be major federal programs for the State of Minnesota for fiscal year 2013, including Unemployment Insurance (CFDA2 17.225), Workforce Investment Act Cluster3 (CFDAs 17.258, 17.259, and 17.278), and Vocational Rehabilitation program (CFDA 84.126).

 


1 Office of the Legislative Auditor’s Financial Audit Division Report 13-08, Department of Employment and Economic Development, issued May 23, 2013.
2 The Catalog of Federal Domestic Assistance is a unique number assigned by the federal government to identify its federal programs.
3 A cluster of programs is a group of closely related programs that have similar compliance requirements and are treated as a single program.

More Information

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