The Division complied with laws and regulations significant to its financial administration except for two personnel requirements. Specifically, employees were often not given performance evaluations required by statute. In addition, some employees had overtime balances exceeding limits allowed under personnel regulations.

The following are selected findings from our audit of the Division of Industrial Relations. We found the Division:

• Audited many more workers' compensation insurers in 1997 than reported in our last audit. Our audit issued in 1990 found the Division had never audited over one-third of insurers. Despite an increased number of insurers since the last audit, the Division complied with statutory requirements to audit each insurer in the past three years. (page 12)

• Did not always comply with standard auditing procedures outlined in its audit manual. Statutes require the Division to use standard auditing procedures. The audits completed in 1997 generally lacked evidence that internal controls were evaluated, adequate planning was done, and additional testing was performed when significant problems were found. In addition, there was no evidence workpapers were reviewed by supervisors and time accounting records were prepared. (page 12)

 
• Because of a poor record keeping system, the Division can not readily determine when mines were last inspected. Mine inspections help identify safety and health hazards, and thereby protect mine workers' safety. (page 14)

 
• Did not inspect 11 of 15 contractors doing asbestos control projects in 1997. The inspections help ensure contractors perform asbestos work properly to protect workers' safety, as well as the safety of others at the site. (page 15)

• Did not always comply with statutory time frames for investigating workplace safety complaints. For example, in almost 10 percent of the 1997 complaint investigations we tested, the Division took longer than the time frames established in statute. Timely investigations help ensure potentially unsafe working conditions are corrected, thereby reducing the risk of accidents. (page 16) 

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Recommendation
Number                                                                                 Accepted     Rejected

1 Document that audits of workers' compensation insurers
use standard auditing procedures specified in the
agency's audit manual, including:

• Evaluating controls over the processing of claims.
• Audit planning.
• Follow-up when noncompliance is found in initial
  testing.
• Supervisory review.
• Organization of workpapers and documentation.
• Time accounting...................................................             X

4 Coordinate inspections of asbestos contractors through
the central office.............................................................             X

5 Monitor the timeliness of workplace safety complaint
investigations for compliance with NRS 618.425...........               X

6 Revise written procedures on workplace complaint invest-
igations to include statutory time frames........................                X

7 Develop work performance standards for each class of
position as required by NRS 284.335.............................             X

8 Prepare employee performance evaluations as required
by NRS 284.340............................................................             X

9 Pay employees for overtime balances exceeding limits
established under NAC 284.250 and establish written
policies and procedures to prevent future non-
compliance....................................................................              X

TOTALS                                                                                     9                     0