|Financial Audit Division Report 08-20||Released August 28, 2008|
The department’s internal controls over workers’ compensation assessments and claims, payroll, and administrative expenditures were not adequate. As a result, the department was not able to ensure it safeguarded assets, accurately paid employees and vendors in accordance with management’s authorization, produced reliable financial information, and complied with finance-related legal requirements. For the items we tested, the department did not consistently comply with finance-related legal requirements for workers’ compensation claims, payroll, and administrative expenditures. The department did resolve a prior finding related to workers’ compensation assessments, pending actions and penalty reductions; however, it failed to adequately address a prior finding regarding employee security access to the state’s accounting system.
||Fiscal Years 2005, 2006, and 2007|
(July 1, 2004, through June 30, 2007)
The Department of Labor and Industry’s mission is to ensure that Minnesota's work and living environments are equitable, healthy, and safe by inspecting and regulating workplaces through education and enforcement. It annually assessed and expended workers’ compensation funds totaling approximately $100 million for each of the past three years. In May 2005, the Governor transferred functions for safety codes and services into the department.