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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Labor and Industry


Financial Audit Division Report 05-45 Released August 11, 2005

Overall Conclusions:

The Department of Labor and Industry’s internal controls over payroll and other administrative expenditures were adequate, and for the items tested, the department complied with finance-related legal provisions.

However, we identified two internal control weaknesses as discussed below.


  • The department provided incompatible accounting system access to five employees who, as a result, could both initiate purchases and process payments.
  • The department did not effectively monitor unpaid penalties nor control reductions of certain penalties assessed to employers for failure to carry workers’ compensation insurance.
The report contained two findings related to the department’s internal controls. The department resolved one prior audit finding regarding payroll system security.

Audit Scope:

Audit Period:
July 1, 2000, to June 30, 2004

Selected Audit Areas:
  • Payroll expenditures
  • Administrative expenditures
  • Penalties for failure to carry workers’ compensation insurance

Agency Background:

The Department of Labor and Industry ensures a safe and equitable work environment for Minnesota employees and employers.

In fiscal year 2004, the department collected $124 million and spent $111 million, mostly for the financing of the Special Workers’ Compensation Fund.


More Information

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