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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota Vehicle Title and Registration System
September 2020 Quarterly Review


Financial Audit Division Released September 2020

The 2019 Legislature directed the Department of Public Safety (DPS) and Minnesota IT Services (MNIT) to replace Minnesota’s Licensing and Registration System (MNLARS) with a vendor-produced software application, following the recommendations of the Independent Expert Review of MNLARS.1 The law outlined an aggressive project timeline for the new Vehicle Title and Registration System (VTRS), with an initial launch by the end of calendar year 2020. The law also required full implementation of VTRS and a complete decommissioning of MNLARS and the legacy motor vehicle systems by the fall of 2021.

The Legislature defined DPS as the owner of VTRS and made the agency responsible for the final decisions on functionality. MNIT is the technical lead on the project and is responsible for the final decisions on the implementation of technology products, services, and staffing. DPS and MNIT awarded the VTRS contract to Fast Enterprises, LLC (FAST) on June 27, 2019, and signed a contract for both software and implementation services on August 7, 2019. FAST also supplied the state’s driver licensing system, which went live on October 1, 2018. Upon completion of the VTRS implementation project, the state will have accomplished what was the original vision for MNLARS—a single, unified driver and vehicle system—now collectively known as Minnesota Drive or MNDRIVE.

The 2019 Legislature dissolved the MNLARS Steering Committee and created the Driver and Vehicle Systems Oversight Committee.2 The new committee is responsible for overseeing the VTRS project and the decommissioning of MNLARS and the legacy motor vehicle systems. The law requires DPS and MNIT to provide quarterly updates to the oversight committee. The law also requires the Office of the Legislative Auditor (OLA) to provide quarterly reviews on the project implementation, stakeholder engagement, and MNLARS decommissioning. For each of these areas, the law requires OLA to identify any concerns or risks that could jeopardize the project.

Complex computer system development projects are fraught with technical and nontechnical risks. As the project leaders, DPS and MNIT are responsible for continuously assessing risks and developing appropriate mitigation strategies. DPS and MNIT also are responsible for keeping the Driver and Vehicle Systems Oversight Committee apprised of both project status and risks. In these quarterly reviews, OLA intends to assist the oversight committee by reporting on risks that do not have mitigation strategies that are commensurate with the underlying risks.

OLA intends to carry forward and update risks from previous quarters, unless we believe the agencies have sufficiently minimized those risks. We will incorporate newly identified risks, so that each new quarterly report will represent the current condition.


DPS, MNIT, and FAST continue to be on track to meet the VTRS project implementation deadlines in law. However, as discussed in this report, OLA remains concerned that migrating data with known integrity issues from MNLARS to VTRS will continue to pose challenges for the project and that certain operational challenges, along with other side projects, could create competing priorities for some project personnel.

OLA has also resurrected risks associated with legislative requirements that could impact the project. Finally, we introduce concerns that project testing may not address key items; as a result, the system may not meet all business needs. While this risk is concerning, OLA continues to assess overall concerns as generally minor given that the project is still completing testing phases and has an opportunity to make corrections prior to project completion.

An image of a cascading arrow pointing to the right that has 4 smaller arrows in it. The first arrow being extreme concerns, followed by sigificant concerns, with minor concerns being bolded and indicating that is the level of concerns for this audit, followed by a no concerns arrow.

Our review found four risks and/or concerns that currently do not have complete mitigation strategies:

RISK 1: Project testing may not address key items.

RISK 2: Moving data from MNLARS to VTRS could be challenging due to existing data integrity issues.

RISK 3: Limited staffing resources, with competing priorities, may place further strain on project personnel.

RISK 4: Certain legislative requirements could impact the VTRS project.

1Laws of Minnesota 2019, First Special Session, chapter 3, art. 2, sec. 35.
2Laws of Minnesota 2019, First Special Session, chapter 3, art. 2, sec. 34.

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