| Financial Audit Division | May 2022 |
Although the Department of Iron Range Resources and Rehabilitation generally complied with the significant finance-related legal requirements we tested and generally had adequate internal controls, we identified a number of instances of noncompliance and internal control weaknesses. The more significant instances of noncompliance and internal control weakness were in the areas of grants monitoring, employee separation payments, and asset management. The list of findings below and the full report provide more information about these concerns.
| Internal Controls Not Adequate | Did Not Comply with Legal Requirements | |
|---|---|---|
| Finding 1. The Department of Iron Range Resources and Rehabilitation did not always monitor grants as required by state policy. (p. 16) | Yes | Yes |
| Finding 2. The Department of Iron Range Resources and Rehabilitation used a portion of the appropriations for Carlton and Koochiching counties on administrative costs without legal authority. (p. 17) | No | Yes |
| Finding 3. The Department of Iron Range Resources and Rehabilitation did not always take appropriate actions to collect payments for delinquent loans. (p. 20) | Yes | Yes |
| Finding 4. The Department of Iron Range Resources and Rehabilitation did not deposit Giants Ridge cash and check sales receipts in compliance with state law and the terms of the waiver authorized by the Department of Management and Budget. (p. 21) | Yes | Yes |
| Finding 5. Prior Finding: The Department of Iron Range Resources and Rehabilitation did not develop certain procedures required by state policy for recording and depositing check receipts. (p. 23) | Yes | Yes |
| Finding 6. Prior Finding: The Department of Iron Range Resources and Rehabilitation assigned incompatible payroll system access profiles to an employee without compensating controls. (p. 26) | Yes | Yes |
| Finding 7. The Department of Iron Range Resources and Rehabilitation set the starting salary for one new employee at an amount that required Department of Management and Budget approval without obtaining that approval. (p. 27) | Yes | Yes |
| Finding 8. The Department of Iron Range Resources and Rehabilitation overpaid two employees and underpaid one employee for retroactive pay rate adjustments. (p. 28) | Yes | Yes |
| Finding 9. The Department of Iron Range Resources and Rehabilitation incorrectly compensated several employees for overtime. (p. 29) | Yes | Yes |
| Finding 10. The Department of Iron Range Resources and Rehabilitation overpaid severance to a former employee. (p. 32) | Yes | Yes |
| Finding 11. The Department of Iron Range Resources and Rehabilitation did not review the Self Service Business Expense Audit Report. (p. 33) | No | Yes |
| Finding 12. The Department of Iron Range Resources and Rehabilitation overpaid several advisory board and technical advisory committee members for mileage reimbursements. (p. 34) | Yes | Yes |
| Finding 13. The Department of Iron Range Resources and Rehabilitation did not manage its assets in compliance with state policy. (p. 37) | Yes | Yes |
| Finding 14. The Department of Iron Range Resources and Rehabilitation did not require cardholders of state purchasing cards to sign agreements every three years. (p. 38) | Yes | Yes |
| Finding 15. The Department of Iron Range Resources and Rehabilitation did not manage its imprest cash account in compliance with state policy. (p. 39) | Yes | Yes |
