Key Findings and Recommendations
The department's internal controls provided reasonable assurance that it properly awarded and monitored grants, accurately recorded grant financial activities in accounting systems, and complied with applicable finance-related legal provisions and management's authorization. Department accounts were effectively structured to handle diverse appropriation conditions for numerous special and ongoing grants. The account structure ensured that grants cancelled at the end of the fiscal year or biennium, or carried forward when legal authority existed. For the items tested, the department complied with finance-related legal provisions. However, we noted the following internal control weaknesses and instances of noncompliance during our audit.
The Department of Trade and Economic Development's (DTED) mission is to facilitate an economic environment that produces new jobs and increases tourism revenues. A large part of the department's financial activities involve awarding and managing loans and grants provided to private and public sector organizations and administering pass-through funding as directed by state Legislature. The department employed approximately 250 staff under the direction of Ms. Rebecca Yanisch.
Financial-Related Audit Reports address internal control weaknesses and noncompliance issues noted during our audits of state departments and agencies. The scope of our work at the Department of Trade and Economic Development included ongoing program and one-time special appropriation grants managed by each of its divisions and overall grant financial management for the period from July 1, 1998, through June 30, 2001.