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 15-06 Released March 24, 2015

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 2014. However, the department had some internal control weaknesses and noncompliance with federal requirements, as noted in the findings presented in this report, including one unresolved finding from the prior audit.1

Findings

  • The Department of Employment and Economic Development did not assess financial penalties for applicants who filed fraudulent claims and inappropriately received federal extended unemployment benefits totaling $2.1 million for fiscal year 2014.
  • The Department of Employment and Economic Development did not have effective internal controls for equipment; it did not maintain inventory records sufficient to identify and locate its equipment and did not complete a physical inventory. This is a repeat finding.

Audit Scope

Our scope included two programs determined to be major federal programs for the State of Minnesota for fiscal year 2014:

  • Unemployment Insurance Program (CFDA2 17.225) $930 million
  • Vocational Rehabilitation Program (CFDA 84.126) $54 million


1 Office of the Legislative Auditor’s Financial Audit Division Report 14-10, Department of Employment and Economic Development, issued March 21, 2014.

2The Catalog of Federal Domestic Assistance (CFDA) is a unique number assigned by the federal government to identify its federal programs.

More Information

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