Report Summary
Minnesota Department of Public Safety – Sales of Driver and Vehicle Records
Internal Controls and Compliance Audit
| Financial Audit Division |
Released August 2020 |
The Minnesota Department of Public Safety administers driver and vehicle services statewide for Minnesota residents. Federal law requires state departments to protect the personal information included in motor vehicle records, but it also requires the disclosure of that data for 1 of 14 permissible uses.1 State law requires the department to disclose driver and vehicle records as required or permitted by federal law2 and establishes the fees the department must charge for the sale of that data.3 The data may be sold in bulk or by individual record.
The Office of the Legislative Auditor (OLA) conducted this audit to determine whether the Department of Public Safety had adequate internal controls and complied with significant finance-related legal requirements. The audit scope included sales of driver and vehicle records, including sales in bulk or by individual record. The period under examination was from July 1, 2016, through February 28, 2019.
Conclusions
Internal Controls
OLA found that the Department of Public Safety’s internal controls were generally not adequate to ensure that it limited sales of driver and vehicle records to permissible uses under federal law, and collected and deposited fees in compliance with state law.
Internal Controls
Specifically, this audit identified the following internal control weaknesses, discussed more thoroughly in the findings and recommendations in this report.
- Finding 1. The Department of Public Safety did not include the statutory requirement for independent audits in its service agreements with bulk data purchasers. (p. 10)
- Finding 2. The Department of Public Safety did not establish formal policies and procedures for reviewing audit reports and client lists submitted by bulk data purchasers. (p. 12)
- Finding 3. The Department of Public Safety did not require purchasers of customized bulk vehicle records to obtain audits of its use of that data. (p. 14)
- Finding 4. The Department of Public Safety did not charge three of the eight purchasers correct fees for their bulk data purchases. (p. 16)
- Finding 5. The Department of Public Safety did not post some fees from the sale of driver and vehicle records to the correct funds and appropriation accounts. (p. 17)
- Finding 6. The Department of Public Safety did not adequately manage accounts receivable. (p. 19)
Legal Compliance
OLA found that the Department of Public Safety generally complied with finance-related legal requirements related to the sale of driver and vehicle records.
Legal Compliance
Specifically, this audit identified the following issues of noncompliance, discussed more thoroughly in the findings and recommendations in this report.
- Finding 1. The Department of Public Safety did not include the statutory requirement for independent audits in its service agreements with bulk data purchasers. (p. 10)
- Finding 3. The Department of Public Safety did not require purchasers of customized bulk vehicle records to obtain audits of its use of that data. (p. 14)
- Finding 4. The Department of Public Safety did not charge three of the eight purchasers correct fees for their bulk data purchases. (p. 16)
- Finding 5. The Department of Public Safety did not post some fees from the sale of driver and vehicle records to the correct funds and appropriation accounts. (p. 17)
- Finding 6. The Department of Public Safety did not adequately manage accounts receivable. (p. 19)
- Finding 7. The Department of Public Safety charged an additional fee for certain driver records that was not specifically authorized in state law. (p. 23)
1 18 U.S. Code, sec. 2721 (2018).
2 Minnesota Statutes 2019, 171.12, subd. 7; and 168.346, subd. 1.
3 Minnesota Statutes 2018, 168.327. The Legislature revised this statute to increase certain fees. Those increases took effect after the scope of this audit.
