|Financial Audit Division Report 05-52
|Released October 5, 2005
Iron Range Resources did not always comply with grant and loan approval procedures that are outlined in statutory provisions. Minnesota Statutes require that the Iron Range Resources and Rehabilitation Board and the Governor review and approve many types of projects. The agency exceeded its statutory authority by initiating projects without seeking or obtaining the required approvals.Key Findings:
| Audit Scope:
The Iron Range Resources and Rehabilitation Board and the Office of the Commissioner of Iron Range Resources and Rehabilitation are created in Minnesota Statutes. Their mission is to strengthen and diversify the economy of northeastern Minnesota. The thirteen-member board is controlled by legislators, while the commissioner is appointed by the Governor to manage the executive branch agency that currently refers to itself as Iron Range Resources.
Working together, the board and the agency make grants and loans to profit and nonprofit corporations, higher education institutions, and other units of government. For the period including fiscal years 2002 through 2004, $67 million in grants and loans were issued.
Our audit scope included only the activities of the executive branch agency—Iron Range Resources. We did not audit expenses for the board (i.e. per diems and travel expenses).