Report Summary
Department of Employment and Economic Development
Federal Compliance Audit
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Financial Audit Division Report 09-09 |
Released March 26, 2009 |
Conclusion
The Department of Employment and Economic Development generally complied with and had controls to ensure compliance with provisions of laws, regulations, contracts, and grants applicable to the major federal programs we audited for fiscal year 2008. However, the department had several weaknesses as noted in the seven findings presented in this report.
Findings
- The department did not identify and document its internal controls ensuring compliance with federal requirements.
- The department did not ensure that unemployment benefit payments were always appropriately assigned to employer accounts for use in tax rate calculations.
- The department did not have effective internal controls to ensure that overtime hours paid to employees were reasonable and approved in advance.
- Prior audit issues not resolved: The department did not consistently monitor subrecipients’ compliance with audit requirements and did not accurately report expenditures for the Community Development Block Grant Program to the federal government.
- The department entered not public data in the state’s accounting system and did not amend some employment plans for Vocational Rehabilitation clients.
Audit Objectives and Scope
Programs material to the State of Minnesota’s financial statements and federal program compliance for fiscal year 2008, including:
- -- Unemployment Insurance
- -- Workforce Investment Act Cluster
- -- Vocational Rehabilitation
- -- Community Development Block Grants
