Department of Labor and Industry financial-compliance audit for the two fiscal years ended .. PDF
Preview Department of Labor and Industry financial-compliance audit for the two fiscal years ended ..
s 354.9 L72DLI 2002 Legislative Audit Division State ofMontana Report to the Legislature Flnancial-Compliaiice Audit November 2002 y? nnriiMFMTs collection For the Two Fiscal Years Ended June 30, 2002 ^^'C 3 ' 2002 MONTANA STATE LIBRARY 1515 E. 6th AVE. HELENA, MCNTAr.'A 536'D Department of Labor and Industry This report contains ten recommendations. Issues addressed in the report include: \ Accounting controls. \ Federal program controls. \ Professional licensing laws. Direct comments/inquiries to: Legislative Audit Division Room 160, State Capitol PO Box 201705 MT 02-11 Helena 59620-1705 Helpeliminate fraud, waste, and abuse in stategovernment. Call the Fraud Hotline at 1-800-222-4446 statewideor444-4446 in Helena. 3oi!ii!|^ FINANCIAL-COMPLIANCE AUDITS Financial-compliance audits are conducted by the Legislative Audit Division to determine ifan agency's financial operations are properly conducted, the financial reports are presented fairly, and the agency has complied with applicable laws and regulations. In performing the audit work, the audit staffuses standards set forth by the American Insfitute ofCertified Public Accountants and the United States General Accounting Office. Financial-compliance audit staffmembers hold degrees with an emphasis in accounting. Most staffmembers hold Certified Public Accountant (CPA) certificates. Government Auditing Standards, the Single Audit Act Amendments of 1996 and 0MB CircularA-133 require the auditorto issue certain financial, internal control, and compliance reports. This individual agency audit report is not intended to comply with these reporting requirements and is therefore not intended fordistribution to federal grantor agencies. The Legislative Audit Division issues a statewide biennial Single Audit Report which complies with the above reporting requirements. The Single Audit Report for the two fiscal years ended June 30, 2003, will be issued by March 31, 2004. The Single Audit Report for the two fiscal years ended June 30, 2001, was issued on March 26, 2002. Copies ofthe Single Audit Report, when available, canbe obtained by contacting: Single Audit Coordinator Legislative Audit Division Office ofBudget and Program Planning Room 160, State Capitol State Capitol PO Box 20 705 1 MT MT Helena 59620 Helena 59620-1705 Phone (406) 444-3616 MEMBERS OF THE LEGISLATIVE AUDIT COMMITTEE LEGISLATIVE AUDIT DIVISION Scott A. Seacat, Legislative Auditor Deputy Legislative Auditors: John W. Noilhey, Legal Counsel Jim Pellegrini, Performance Audit & Tori Hunthausen, IS Audit Operations James Gillett, Financial-Compliance Audit November2002 The Legislative Audit Committee ofthe Montana State Legislature: This is our financial-compliance audit report on the Department ofLabor and Industry for the two fiscal years ended June 30, 2002. Ourreport contains recommendations concerning accounting controls, federal program controls, and professional licensing laws. We thank the department's commissioner and stafffor their assistance and cooperation during the audit. Respectfully submitted, Scott A. Seacat Legislative Auditor Room 160. StateCapitol BuildingPOBox 201705 Helena, MT 59620-1705 Phone(406)444-3122 FAX(406)444-9784 E-Mail lad(gjstate.mt.us Digitized by the Internet Archive in 2010 with funding from IVIontana State Library http://www.archive.org/details/departmentoflabo2002mont Legislative Audit Division Financial-Compliance Audit For the Two Fiscal Years Ended June 30, 2002 Department of Labor and Industry Members ofthe audit staffinvolved in this audit were Laurie Barrett, Laurie H. Evans, John Fine, Jason Gilliam, Brenda Kedish, Hollie Koehler, Amber Long, andJennifer Solem. 1 Table of Contents Appointed and Administrative Officials iii Report Summary S-1 Introduction 1 Introduction 1 Background 1 Unemployment Insurance 3 Prior Audit Recommendations 5 Prior Audit Recommendations 5 Findings and Recommendations 7 Accounting Errors and Misstatements 7 Unemployment Trust Revenue Misclassification 7 Subsequent Injury Fund Estimated Claims Liability 7 Property Held in Trust 8 Insurer Deposits 8 Duplicate Revenue Recognition 9 Expenditure Classification Error 9 Uninsured Employers Fund Receivable 9 Unemployment Insurance Fund Cash 9 Accounting Oversight 10 Federal Program Controls 1 Cash Management 11 Trade Adjustment Assistance Training Costs 12 Fixed Assets 13 Federal Reporting 14 Unemployment Insurance Benefit Overpayment Collections 15 Internal Service Fund 16 Professional and Occupational Licensing 16 Child Labor Laws 18 Safety Employment Advisory Committee 19 & Independent Auditor's Report Financial Schedules A-1 Independent Auditor's Report A-3 & Schedule ofChanges in Fund Balances Property Held in Trust forthe Fiscal Year Ended June 30, 2002 A-5 & Schedule ofChanges in Fund Balances Property Held inTrust forthe Fiscal Year Ended June 30, 2001 A-6 Schedule ofTotal Revenues & Transfers-In For the Fiscal Year Ended June 30, 2002 A-7 & Schedule ofTotal Revenues Transfers-In For the Fiscal Year Ended June 30, 2001 A-8 Page i 1 Table of Contents & Schedule ofTotal Expenditures Transfers-Out For the Fiscal Year Ended June 30, 2002 A-9 & Schedule ofTotal Expenditures Transfers-Out For the Fiscal Year Ended June 30, 2001 A-10 Notes to Financial Schedules A-1 Department Response B-1 Department ofLaborand Industry B-3 Page ii Appointed and Administrative Officials Department ofLabor and Wendy Keating Commissioner Industry Commissioner's Office, Office ofHuman Resources, Office ofLegal Services Jim Brown Administrator Business Standards Division Jerry Keck Administrator Employment Relations Division Ingrid Childress Administrator Workforce Services Division Tammy Peterson Administrator Centralized Services Division Keith Kelly Administrator Unemployment Insurance Division Mike McCarter Judge Workers' Compensation Court SteveNelson Administrator, Office ofCommunity Services For additional information concerning the Department ofLabor and Industry, contact: Tammy Peterson, Administrator Centralized Services Division 1327 Lockey POBox 1728 MT Helena 59624-1728 e-mail: tapetersonfa state.mt.us Page Hi
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