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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 06-09 Released March 9, 2006

Key Findings:

  • Implementation of a new computerized unemployment insurance system made it difficult for the department to measure year-end revenue and file a required quarterly federal financial activity report.
  • The department did not consistently monitor and report Community Development Block Grant project expenditures.
  • Certain organizations receiving federal vocational rehabilitation funds did not file quarterly reports, as specified in their grant agreement.
The audit report contained four audit findings relating to internal control or legal compliance. The department resolved two findings included in our prior report. The department is working towards implementing a new computer system in the fall of 2007 to address the other two issues.
   Audit Scope:

Programs material to the State of Minnesota’s financial statements and to federal program compliance for fiscal year 2005.

Selected Audit Areas:
  • Unemployment Insurance Fund

  • Federal programs, including:
    • Unemployment Insurance Administration
    • Employment Services Cluster
    • Workforce Investment Act Cluster
    • Vocational Rehabilitation
    • Community Development Block Grant


The Department of Employment and Economic Development (DEED) recorded unemployment insurance revenues totaling $928 million and paid benefits of $678 million for fiscal year 2005. As of June 30, 2005, the department owed $82 million to the federal government.


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