Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Labor and Industry
Construction Codes and Licensing Division
Internal Controls and Compliance Audit

 

Financial Audit Division Report 12-13

Released June 14, 2012

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Conclusion

The internal controls reviewed at the Department of Labor and Industry’s Construction Codes and Licensing Division were generally adequate to ensure that it safeguarded its financial resources, accurately paid claimants in accordance with management’s authorization, created reliable financial data, and complied with significant finance-related legal requirements. However, the department had some control weaknesses related to its receipts in the Construction Code and Licensing Division. For the items tested, the department complied with significant finance-related legal requirements.

Findings

• The Department of Labor and Industry did not perform effective monthly receipt reconciliations between its subsystems and the state’s accounting system.
• The Department of Labor and Industry inappropriately allowed Construction Code and Licensing Division staff access to receipts collected for construction plan reviews.

Audit Objectives and Scope

Objectives	Period Audited
Internal Controls Legal Compliance	July 1, 2009, through February 29, 2012
Programs Audited
Construction Code Fund Revenue Residential Contractor Recovery Fund