Minnesota Office of the Legislative Auditor
Financial Audit Division


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Report Summary
Personnel and Payroll Compliance
Legal Compliance Audit


Financial Audit Division Report 11-26 Released November 10, 2011


Generally, for the items tested, state agencies complied with the personnel and payroll provisions related to employee overtime, discretionary performance-based salary increases, early retirement incentives, and post-retirement options. Exceptions are identified in our findings below.


  • Several state agencies paid an insufficient amount into the post-retirement option employees’ health care savings plan accounts, and other employees received benefits not authorized by statute or policy.
  • The departments of Human Services and Commerce allowed some employees to work more hours than allowed during their post-retirement option appointments.
  • The departments of Natural Resources and Human Services did not consistently comply with overtime provisions for some employees.

Audit Objectives and Scope

Objectives Objective
  • Legal compliance
July 1, 2008, through April 30, 2011
Statewide Programs Audited
  • Employee overtime expenditures
  • Discretionary performance-based
    salary increases for employees
    in the Managerial Plan or
    Commissioner’s Plan
  • Early retirement incentive
  • Post-retirement option
More Information

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155