Office of the Legislative Auditor - Financial Audit Division
Department of Employment and Economic Development
Financial Audit Division Report 07-07
Released March 23, 2007
The department did not effectively control adjustments to employers’ unemployment insurance accounts. Too many staff could update these high-risk transactions, legal staff did not always approve “compromises” exceeding the $2,500 statutory limit, and weaknesses existed over the refund process.
The department inappropriately discarded military and federal employee wage verification documents.
One prior audit issue was not resolved. The department did not consistently monitor and report expenditures for the Community Development Block Grant Program.
The report contained four findings related to internal control and legal compliance, including one from last year that remained unresolved. Three additional prior year audit recommendations were implemented.
Programs material to the State of Minnesota’s financial statements and to federal program compliance for fiscal year 2006.
Selected Audit Areas:
Unemployment Insurance Fund
Federal Programs, including:
Unemployment Insurance Administration
Employment Services Cluster
Workforce Investment Act Cluster
Community Development Block Grants
In fiscal year 2006, The Department of Employment and Economic Development recorded unemployment insurance tax revenues totaling $978 million and paid benefits of $691 million. The department also managed federal expenditures totaling approximately $194 million.