Department of Labor And Industry Financial-Compliance Audit for the Two Fiscal Years Ended .. 2007

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Recommendation #4 We recommend the department establish controls for central purchases and for Workforce Investment Act contracts to ensure compliance with federal regulations related to suspension and debarment.
Compliance with State and Federal Laws and Regulations The department is responsible for compliance with state and federal laws and regulations.
During the audit of the department, we tested the department's compliance with approximately 385 laws. The following report sections discuss
...instances where the department was not complying with state and federal laws.
Unemployment Insurance The department assigned employers incorrect Unemployment Insurance tax rates.
During fiscal year 2006 and 2007 the department collected over $161 million in Unemployment Insurance (UI) tax revenue. For each calendar year the department has a process to assign approximately 35,000 employers each year to one of the 20 tax rates specified in state law based on employer experience in the UI program. The department first calculates theoretical cut-off points that will generate the amount of revenue needed to adequately fund the UI program.


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