Report Summary
Management Letter
Department of Economic Security
Fiscal Year Ended June 30, 2000
Key Findings and Recommendations:
- PRIOR FINDING PARTIALLY RESOLVED. The department did not provide adequate oversight of American Learning Exchange Grant (CFDA 17.207) vendors to ensure that they complied with grant provisions. The department did not receive timely progress reports and adequate documentation to support reimbursements to certain vendors. We also noted that certain overhead rates and fees submitted by the vendors were not specified in the grant agreement. We recommended the department improve its oversight of this grant by clarifying these financial concerns.
- The department did not effectively monitor certain manual checks generated from the Unemployment Insurance Benefit Account. We found that one employee was responsible for the preparation and mailing of the checks, in addition to recording the transactions in the accounting system. We recommended improved controls by having an independent person ensure that all checks issued were authorized.
Management letters address internal control weaknesses and noncompliance issues found during our annual audit of the state's financial statements and federally-funded programs. The scope of work in individual agencies is limited. During the fiscal year 2000 audit, our work at the Department of Economic Security focused on financial activities of the Unemployment Insurance Trust Fund and eight federal programs administered by the department.
