Report Summary
Iron Range Resources & Rehabilitation Board
(IRRRB)
Financial Audit
For the Three Years Ended June 30, 1993
| Public Release Date: August 12, 1994 |
No. 94-38 |
Objectives
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Assess Internal Control Structure: Taconite tax receipts, mining
company reimbursements, investment income, grant disbursements,
loan issuances and repayments, and employee payroll.
-
Test Compliance with certain Finance-Related Legal Provisions.
Conclusions
We found eight areas where the internal control structure needed
improvement:
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The IRRRB has not expended $890,000 from a 1987 General Fund
appropriation.
-
The IRRRB departed from the grant guidelines without adequate
justification.
-
The IRRRB has not sufficiently controlled grants made from the
Research and Planning Division.
-
The IRRRB departed from its loan guidelines without establishing
adequate justification.
-
The IRRRB did not always adequately monitor delinquent bank
participation loans.
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The IRRRB did not obtain board approval before allowing a
foreclosed loan to be taken over by a third party.
-
The IRRRB did not properly monitor certain aspects of a management
service agreement.
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The IRRRB improperly reimbursed a contractor for certain expenses.
We found one departure from finance-related legal provisions:
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The IRRRB funded a project outside the taconite tax relief area.
