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:
- 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.
