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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Economic Security

Financial Audit

For the Fiscal Year Ended June 30, 1995


Public Release Date: May 3, 1996 No. 96-20

Agency Background

The Department of Economic Security is responsible for providing an employment, rehabilitation, and income support system to increase the economic independence of Minnesotans. A few of the major programs administered by the department include: Reemployment Insurance, Rehabilitation Services, Job Service, Low Income Energy Assistance, and Job Training Partnership Act. Ms. R. Jane Brown serves as the commissioner of the department.

Audit Areas and Conclusions

Our audit scope was limited to those activities material to the State of Minnesota's Comprehensive Annual Financial Report for the year ended June 30, 1995, and to requirements of the Single Audit Act of 1984, relating to federal financial assistance. In addition, we reviewed certain aspects of the State Extended Employment Program.

We reviewed Reemployment Insurance revenues and benefit payments. The Department of Economic Security complied with statutory requirements for disbursing reemployment insurance benefits. In addition, the department appropriately accounted for and deposited reemployment insurance revenues. However, we found that the department needs to improve controls over employer tax rates.

In addition, we reviewed specific compliance requirements related to federal programs reviewed under the Single Audit Act. We found that the department is complying with most of these requirements. However, we found that the department did not have records to support a portion of the state match it reported to the federal government for federal fiscal years 1993, 1994, and 1995 for the Basic Support federal grant (CFDA 84.126).

Finally, we looked at different aspects of the State Extended Employment Program. We feel the department did not meet required audit and reconciliation requirements.


Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : or 651‑296‑4708