Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Supplemental Payments to Employees
Overtime and Expense Reimbursements

 

Financial Audit Division Report 16-13 Released October 6, 2016

The Office of the Legislative Auditor conducted this audit to determine whether state departments that paid the highest amounts of overtime and employee business expense reimbursements had adequate internal controls over those expenditures and complied with applicable payroll and other legal requirements. Over fiscal years 2014, 2015, and 2016, the state paid approximately $270 million in overtime and approximately $96 million in employee business expense reimbursements.

Conclusion

The departments of Corrections, Human Services, Natural Resources, Public Safety, and Veterans Affairs had adequate internal controls to ensure that they accurately paid employees for authorized overtime hours worked. These departments also complied with the payroll and other legal requirements related to overtime we tested. However, the Department of Transportation needs to strengthen some controls.

The departments of Health, Human Services, Natural Resources, Transportation, and the Minnesota State Colleges and Universities system had adequate internal controls over employee expense reimbursements to ensure that employees received proper reimbursement for reasonable and necessary costs. These departments also complied with the payroll and other legal requirements related to employee expense reimbursements we tested.

Audit Finding

  • The Department of Transportation had some control weaknesses over ensuring the accuracy and authorization of its payroll transactions, including overtime.
More Information

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