Report Summary
Department of Jobs and Training
Financial Audit
For the Year Ended June 30, 1993
| Public Release Date: June 17, 1994 |
No. 94-28 |
Objectives
Evaluate internal control structure for the following Programs: Food
Distribution, Employment Services, Unemployment Insurance,
Dislocated Workers, Job Training Partnership Act, Weatherization
Assistance, Rehabilitation Services Basic Support, Low Income Home
Energy Assistance Block Grant, Community Services Block Grant,
Social Security-Disability Insurance.
Test compliance with certain finance-related legal provisions.
Conclusions
We found five areas where the internal control structure needed
improvement:
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DJT did not recover its full federal reimbursements for the
Emergency Unemployment Compensation Program.
-
DJT does not have effective controls over Unemployment Insurance
receipts, especially those processed by the cashier unit.
-
DJT is not accurately determining the accounts receivable balance
for the Unemployment Compensation Fund financial statements.
-
DJT does not have an automatic sign-off control on terminals
linked to its computer network.
-
Dislocated Workers Program staff did not have adequate accounting
information to eliminate unauthorized borrowing.
We found six areas where the department had not complied with
finance-related legal provisions:
-
DJT incurred a deficit in a federal account as a result of paying
remodeling costs without sufficient resources.
-
DJT is maintaining excessive cash balances in its Unemployment
Insurance Clearing Account.
-
DJT bank balances exceeded the collateral amounts authorized by
statute.
-
DJT reported inaccurate information on the annual activity report
for the Weatherization Assistance for Low Income Persons Program.
-
DJT improperly charged remodeling costs to the Unemployment
Insurance program.
-
The department did not obtain prior approval for some
administrative expenditures charged to three federal programs.
