Report Summary
Department of Employment and Economic Development
Federal Compliance Audit
|
Financial Audit Division Report 10-10 |
Released March 18, 2010 |
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 2009. However, the department had weaknesses, as noted in the nine findings presented in this report, including three repeat findings from last year’s audit that it did not fully resolve.
Findings
- Prior Finding Partially Resolved: The department did not identify and document its internal controls to ensure compliance with federal requirements.
- The department did not detect errors on the Schedule of Expenditures of Federal Awards for the federal Unemployment Insurance program.
- The department did not review system reports designed to identify possible fraudulent Unemployment Insurance benefits and employer tax filings.
- Prior Finding Partially Resolved: The department did not ensure that unemployment benefit payments were always appropriately assigned to employer accounts.
- The department did not send amended unemployment determination notices to some applicants and employers.
- The department allowed some employees to have unnecessary or incompatible access to the state’s accounting system.
- The department did not adequately monitor overtime hours paid to an employee and it did not accurately calculate a severance payment for one employee.
- Prior Finding Partially Resolved: The department did not remove or protect client names it inappropriately entered in the state’s accounting system in prior years.
Audit Scope
Programs material to the State of Minnesota’s financial statements and federal program compliance for fiscal year 2009, including Unemployment Insurance, Workforce Investment Act Cluster, and Vocational Rehabilitation.
