Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Human Rights
Internal Controls and Compliance Audit

 

Financial Audit Division Report 14-15 Released June 5, 2014

The Department of Human Rights is a state agency with the primary purpose to investigate and resolve charges of discrimination. It also ensures that businesses seeking state contracts are in compliance with equal opportunity requirements by issuing certificates of compliance to those businesses that have an affirmative action plan approved by the commissioner of Human Rights.

The department did not have adequate internal controls over fees paid by entities to obtain certificates of compliance for approved affirmative action plans. For its expenditures and other receipts, the department had generally adequate internal controls to ensure that its financial operations were appropriate1 and compliant with applicable legal requirements;2 however, it had some internal control weaknesses and instances of noncompliance in these areas.

Key Findings

  • The Department of Human Rights did not have fundamental internal controls to ensure that it safeguarded, deposited, and accurately recorded certificate of compliance fees.
  • The Department of Human Rights did not eliminate or mitigate the risk created by assigning employees incompatible security roles in the state’s accounting system.
  • The Department of Human Rights did not have documentation to support its physical verification of assets in its inventory.

 


1 Appropriate financial operations would provide reasonable assurance that assets are safeguarded, payments to employees and vendors are accurate and authorized, and financial transactions are accurately recorded in the entity’s accounting system.

2 Applicable legal requirements generally include state statutes and laws, statewide policies and procedures, contracts, and grant agreements.

More Information

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