Report Summary
Iron Range Resources
Internal Control and Compliance Audit
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Financial Audit Division Report 09-31 |
Released September 11, 2009 |
Conclusions
For the areas audited, the Iron Range Resources’ internal controls were generally adequate to ensure it accurately paid vendors and employees, produced reliable financial records, and complied with most finance-related legal requirements. However, the agency had some internal control weaknesses in its processes for receipts, financial systems’ security, payroll and employee expenses, and certain aspects of its grants and loans.
For the items tested, the agency generally complied with finance-related legal requirements, except for timely deposit of some receipts, travel benefits, and certain contract requirements. The agency did not fully resolve two prior audit findings.
Findings
- Iron Range Resources did not adequately monitor certain grants and did not always ensure borrower adherence to certain financial requirements called for in loan agreements.
- Prior Finding Partially Resolved: Iron Range Resources did not effectively restrict or monitor employee access to the state’s financial systems.
- Prior Finding Not Resolved: Iron Range Resources did not provide an independent review of biweekly payroll transactions to ensure it accurately paid its employees.
- Iron Range Resources did not promptly record and deposit Giants Ridge Golf and Ski receipts, and other agency receipts were not tightly controlled.
- Iron Range Resources’ controls did not include sufficient documentation and monitoring to demonstrate compliance with the state travel policy.
- Iron Range Resources did not sufficiently protect certain not public data obtained from temporary workers at Giants Ridge.
Audit Objectives and Scope
Internal controls and compliance for fiscal years 2007, 2008, and 2009 (through February 28, 2009) over the following selected areas:
- Financial management
- Giants Ridge & selected receipts
- Grants & loans
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- Human resources & payroll expenditures
- Employee business expenditures
- Operating & administrative expenditures
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