Office of the Legislative Auditor - Financial Audit Division

Overall Conclusion:

The Department of Correction had inadequate controls for monitoring certain payroll and personnel transactions.  The department generally complied with material finance-related legal provisions; however, it paid dentists more than the statutory compensation limits.  The department could also improve its controls over grant funding and reporting requirements.

Key Findings:

• The department did not comply with certain payroll monitoring policies.
• The department did not adequately monitor leave balance adjustments.
• The department exceeded statutory salary limits paid to dentists.
• The department did not adequately restrict access to its pay rate and other high-level personnel transactions.
• The department did not ensure grantees met grant funding requirements.
• The department did not ensure counties complied with financial reporting requirements for the community correction act. 

Audit Scope:

Audit Period:
July 1, 2003, through June 30, 2005

• Personnel and Payroll Controls
• Governmental Grants and Subsidies

Agency Background:

The Minnesota Department of Corrections is a service and regulatory agency.  It has a broad range of activities and responsibilities, including the operation of ten correctional facilities for adults and juveniles.  The department has organized its operations into three divisions:  Facility Services, Support Services, and Community Services.  The department also has units for investigations, correctional industries, and health services.  Additionally, volunteer citizen advisory groups assist the department in the areas of community corrections, women offender programs, and correctional industries.  The department has over 4,000 employees.