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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Employment and Economic Development


Financial Audit Division Report 05-17 Released March 10, 2005

Key Findings:

  • The Department of Employment and Economic Development (DEED) needs to improve scrutiny of changes in employer accounts and detailed wage data, and the related impact on unemployment insurance experience ratings and revenue recognition.
  • Unemployment insurance data integrity controls require improvement to ensure the accuracy of employer tax rate calculations.
  • DEED did not accurately identify and report expenditures for three federal programs.

The audit report contained 4 audit findings relating to internal control or legal compliance. The department resolved three findings included in our prior report.

Audit Scope:

Programs material to the State of Minnesota’s financial statements and to federal program compliance for fiscal year 2004.

Selected Audit Areas:
  • Unemployment Insurance Fund
  • Federal programs, including:
    • Unemployment Insurance Administration
    • Employment Services Cluster
    • Workforce Investment Act Cluster
    • Vocation Rehabilitation
    • Social Security Disability Income


The Department of Employment and Economic Development recorded unemployment insurance revenues totaling $939 million and benefits of $919 million for fiscal year 2004. As of June 30, 2004, the department had a $271 million loan from the federal government.

More Information

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