Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Commerce
Federal Compliance Audit

 

Financial Audit Division Report 12-06

Released March 23, 2012

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Conclusion

The Department of Commerce 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 2011. However, the department had control weaknesses and noncompliance with federal requirements, as noted in the three findings presented in this report.

Findings

• The Department of Commerce did not adequately monitor a local service provider that inappropriately provided $1.35 million to households who did not meet the eligibility requirements for the crisis emergency benefits they received from the Low-Income Home Energy Assistance Program.
• Prior Finding Partially Resolved: The Department of Commerce did not have adequate control procedures to ensure that local service providers and their contractors were in compliance with the Davis-Bacon Act.
• Prior Finding Not Resolved: The Department of Commerce did not maintain accurate inventory records for equipment acquired by local service providers using funds from the federal Weatherization Assistance for Low-Income Persons Program.

Audit Scope

Our scope included the Low-Income Home Energy Assistance Program and the Weatherization Assistance for Low-Income Persons Program, which were major federal programs for the State of Minnesota for fiscal year 2011.