|Public Release Date: March 27, 1998||No. 98-21|
The Department of Human Rights was established in 1967 to enforce and administer the Minnesota Human Rights Act. The department investigates and resolves allegations of unlawful discrimination. In addition, the department reviews affirmative action plans submitted by firms seeking to do business within Minnesota. Dolores Fridge was appointed acting commissioner in October 1996 and confirmed by the Senate in February 1997.
Our audit objective was to obtain an understanding of management controls for the period from July 1, 1995, to June 30, 1997, relevant to federal contract revenue, payroll, and administrative expenditures. We also designed our audit to provide reasonable assurance that the department complied with applicable legal provisions.
We concluded that the Department of Human Rights designed internal controls to provide reasonable assurance that federal contract revenue was properly supported, deposited, and recorded in the state's accounting system. In addition, the department collected all federal contract revenue earned pursuant to the U.S. Equal Employment Opportunity Commission contracts.
The Department of Human Rights designed internal controls to provide reasonable assurance that payroll and administrative expenditures were properly authorized, documented, and accurately recorded in the state's accounting system. For the items tested, the department processed expenditures in compliance with finance-related legal provisions. However, the department needs to restrict security access to its payroll and personnel data for some employees.
The department, in its response, acknowledged the importance of the separation of duties and has several controls in place to ensure that the payroll procedures and policies are properly adhered to.