Report Summary
State Services for Persons with Hearing and Vision Disabilities
| Financial Audit Division |
Released June 2020 |
The state provides an array of services for people with disabilities, including those with a hearing and/or vision disability. Using the Disability Minnesota website, the Office of the Legislative Auditor identified 12 state entities that we thought may provide services to people with a hearing and/or vision disability. After interviewing staff at each of the 12 state entities, we determined that 10 state entities provided services to people with a hearing and/or vision disability. Of those ten state entities, we selected five state agencies—and within those state agencies, six divisions or programs—to audit.1
The Office of the Legislative Auditor (OLA) conducted this selected scope audit to determine whether the identified state agencies had adequate internal controls and complied with significant finance-related legal requirements when providing services to people with a hearing and/or vision disability. The period under examination was from July 1, 2016, through February 28, 2019. Exhibit 1 below lists the state agencies, divisions or programs, and activities audited.
Exhibit 1: State Agencies, the Division or Program Subject to Audit, and the Activities Audited
Department of Administration, Accommodation Reimbursement Fund
- Reimbursements to state agencies for the cost of reasonable accomondations
Department of Administration, System of Technology to Achieve Results (STAR) Program
- Inventory
- Purchase of assistive technology devices
- Payroll expenditures
Department of Commerce, Minnesota Relay Program
- Contract with Sprint Communications Company to operate the Minnesota Relay Program
- Payments to Sprint Communications Company
- Payroll expenditures
Department of Employment and Economic Development, State Services for the Blind, Communication Center
- Revenue from braille and audio services
- Donations
- Payroll expenditures
Department of Human Services, Deaf and Hard of Hearing Services Division (DHHSD)
- Grant expenditures
- Eligibility of individuals who received telecommunications devices
- Inventory
- Purchase of telecommunications devices
- Payroll expenditures
Minnesota Department of Health, Early Hearing Detection and Intervention Program
- Grant expenditures
- Payroll expenditures
SOURCE: Office of the Legislative Auditor.
Conclusions
Internal Controls
OLA found that internal controls were generally not adequate to ensure that the state agencies (1) provided authorized services to persons who have a hearing and/or vision disability, (2) spent funds in accordance with legal requirements and management’s authorization, and (3) safeguarded its resources in four state agency divisions or programs. This audit identified internal control weaknesses in the following state agencies, listed in order of severity:
- Department of Employment and Economic Development, State Services for the Blind, Communication Center
- Department of Human Services, Deaf and Hard of Hearing Services Division (DHHSD)
- Department of Administration, System of Technology to Achieve Results (STAR) Program
- Department of Administration, Accommodation Reimbursement Fund
Internal Controls
While we found the Department of Employment and Economic Development, State Services for the Blind, Communication Center’s internal controls to be generally not adequate, we found that internal controls over donations were not adequate.
Specifically, this audit identified the following internal control weaknesses.
- Department of Employment and Economic Development, State Services for the Blind, Communication Center:
- Finding 2. The Department of Employment and Economic Development, State Services for the Blind, Communication Center did not safeguard donations it received directly from donors. (p. 16)
- Finding 3. The Department of Employment and Economic Development, State Services for the Blind, Communication Center did not maintain complete and accurate donation records. (p. 17)
- Finding 4. The Department of Employment and Economic Development, State Services for the Blind, Communication Center did not always use donation receipts in accordance with the donor’s intent. (p. 18)
- Department of Human Services, Deaf and Hard of Hearing Services Division (DHHSD):
- Finding 5. The Department of Human Services, Deaf and Hard of Hearing Services Division did not identify and mitigate grant reviewer conflicts of interest, monitor grant recipients, and conduct financial reconciliations of grant recipient expenditures, as required by state policy. (p. 24)
- Finding 6. The Department of Human Services, Deaf and Hard of Hearing Services Division could not provide documentation to prove eligibility of telecommunications equipment recipients. (p. 28)
- Finding 7. The Department of Human Services, Deaf and Hard of Hearing Services Division did not safeguard or accurately record into inventory telecommunications equipment located at the central office. (p. 30)
- Department of Administration, System of Technology to Achieve Results (STAR) Program:
- Finding 8. The Department of Administration did not safeguard and maintain accurate records of its STAR program assistive technology equipment. (p. 37)
- Department of Administration, Accommodation Reimbursement Fund:
- Finding 9. The Department of Administration did not accurately reimburse state agencies for the cost of reasonable accommodations, as required by state statutes. (p. 43)
OLA found that internal controls were generally adequate to ensure that the state agency (1) provided authorized services to persons who have a hearing and/or vision disability, (2) spent funds in accordance with legal requirements and management’s authorization, and (3) safeguarded its resources in one state agency program:
1.
Department of Commerce, Minnesota Relay Program
Internal Controls
- Department of Commerce, Minnesota Relay Program:
- Finding 10. The Department of Commerce did not document its performance of internal controls designed to verify the accuracy of fees paid for relay services. (p. 47)
OLA found that internal controls were adequate to ensure that the state agency (1) provided authorized services to persons who have a hearing and/or vision disability, (2) spent funds in accordance with legal requirements and management’s authorization, and (3) safeguarded its resources in one state agency program:
- Minnesota Department of Health, Early Hearing Detection and Intervention Program
Internal Controls
Legal Compliance
OLA found that the following two state agency divisions or programs generally did not comply with most significant legal requirements and management’s authorization when (1) providing services and paying to provide services to persons who have a hearing and/or vision disability, and (2) safeguarding its resources. This audit identified noncompliance in the following state agencies, listed in order of severity:
- Department of Employment and Economic Development, State Services for the Blind, Communication Center
- Department of Human Services, Deaf and Hard of Hearing Services Division (DHHSD)
Legal Compliance
Specifically, OLA found the following issues of noncompliance, discussed more thoroughly in the findings and recommendations in this report.
- Department of Employment and Economic Development, State Services for the Blind, Communication Center:
- Finding 1. The Department of Employment and Economic Development, State Services for the Blind did not deposit donations it received for the Communication Center in the state treasury, as required by state statute. (p. 16)
- Finding 2. The Department of Employment and Economic Development, State Services for the Blind, Communication Center did not safeguard donations it received directly from donors. (p. 16)
- Finding 4. The Department of Employment and Economic Development, State Services for the Blind, Communication Center did not always use donation receipts in accordance with the donor’s intent. (p. 18)
- Department of Human Services, Deaf and Hard of Hearing Services Division (DHHSD):
- Finding 5. The Department of Human Services, Deaf and Hard of Hearing Services Division did not identify and mitigate grant reviewer conflicts of interest, monitor grant recipients, and conduct financial reconciliations of grant recipient expenditures, as required by state policy. (p. 24)
- Finding 6. The Department of Human Services, Deaf and Hard of Hearing Services Division could not provide documentation to prove eligibility of telecommunications equipment recipients. (p. 28)
- Finding 7. The Department of Human Services, Deaf and Hard of Hearing Services Division did not safeguard or accurately record into inventory telecommunications equipment located at the central office. (p. 30)
OLA found that the following two state agency divisions or programs generally complied with most significant legal requirements and management’s authorization when (1) providing services and paying to provide services to persons who have a hearing and/or vision disability, and (2) safeguarding its resources:
- Department of Administration, System of Technology to Achieve Results (STAR) Program
- Department of Administration, Accommodation Reimbursement Fund
Legal Compliance
Specifically, OLA found the following issues of noncompliance, discussed more thoroughly in the findings and recommendations in this report.
- Department of Administration, System of Technology to Achieve Results (STAR) Program:
- Finding 8. The Department of Administration did not safeguard and maintain accurate records of its STAR program assistive technology equipment. (p. 37)
- Department of Administration, Accommodation Reimbursement Fund:
- Finding 9. The Department of Administration did not accurately reimburse state agencies for the cost of reasonable accommodations, as required by state statutes. (p. 43)
OLA found that the following two state agency programs complied with most significant legal requirements and management’s authorization when (1) providing services and paying to provide services to persons who have a hearing and/or vision disability, and (2) safeguarding its resources:
- Department of Commerce, Minnesota Relay Program
- Minnesota Department of Health, Early Hearing Detection and Intervention Program
Legal Compliance
Specifically, the Department of Commerce complied with most significant legal requirements and management’s authorization when it contracted for Minnesota Relay services, charged administrative costs to Minnesota Relay, and paid personnel costs for the employee who worked on the program and that employee’s manager. The Minnesota Department of Health complied with most significant legal requirements and management’s authorization when it awarded and monitored the Early Hearing Detection and Intervention Program grants and paid personnel costs for the employee who worked on the program.
1 See page 8 for more information on Disability Minnesota and a listing of the 12 entities interviewed.
