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Office of the Legislative Auditor - Financial Audit Division

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Retroactive Pay Adjustments for Law Enforcement Employees at the Departments of Commerce, Corrections, Natural Resources, and Public Safety
Performance Audit

Financial Audit Division July 2024

Conclusions

Our audit found that state agencies had not resolved the inaccurate retroactive payments for 30 percent of employees we tested.

This report highlights some significant areas of concern around the retroactive pay adjustment process, including limitations in the state’s payroll system, poor communication among state agencies, and the inability of agencies to process accurate and timely payments to employees.

Our overall conclusions for the audit are as follows:

  • Minnesota Management and Budget did not have adequate internal controls over the parameters it established for the payroll system’s retroactive pay adjustment calculations.

  • The Department of Commerce complied with the legal requirements related to the retroactive pay adjustments we tested and had adequate internal controls to ensure compliance with those legal requirements.

  • The departments of Corrections, Natural Resources, and Public Safety did not comply with the legal requirements related to the retroactive pay adjustments we tested. They also did not have adequate internal controls to ensure compliance with those legal requirements.

The list of findings below and the full report provide more information about these concerns.

Findings and Recommendations

Finding 1

    Minnesota Management and Budget processed retroactive pay adjustments with incorrect date parameters for Minnesota Law Enforcement Association members. (p. 11)

    Recommendations

  • Minnesota Management and Budget should use the correct date parameters when processing retroactive pay adjustments.
  • Minnesota Management and Budget should strengthen internal controls by ensuring an experienced employee reviews the process parameters in the state’s payroll system before it initiates retroactive pay adjustments.

Finding 2

    The Department of Corrections issued incorrect retroactive payments to two Minnesota Law Enforcement Association members. (p. 14)

    Recommendations

  • The Department of Corrections should resolve inaccurate retroactive payment errors for each employee identified.
  • The Department of Corrections should strengthen internal controls to ensure the accuracy of retroactive payments.

Finding 3

    The Department of Natural Resources approved system-calculated retroactive payments it knew were incorrect for 161 Minnesota Law Enforcement Association members before it conducted the required review of the calculations.

    The Department of Natural Resources also calculated and issued incorrect retroactive payments for three additional Minnesota Law Enforcement Association members. (p. 15)

    Recommendations

  • The Department of Natural Resources should only approve system-calculated retroactive payments if it has reviewed the calculations for accuracy.
  • The Department of Natural Resources should strengthen internal controls to ensure the accuracy of retroactive payments.
  • The Department of Natural Resources should obtain guidance from Minnesota Management and Budget on the mass retroactive pay adjustment process, when needed.

Finding 4

    The Department of Natural Resources did not resolve incorrect retroactive payments to 20 Minnesota Law Enforcement Association members. (p. 17)

    Recommendations

  • The Department of Natural Resources should resolve inaccurate retroactive payment errors for each employee identified.
  • The Department of Natural Resources should strengthen internal controls to ensure the accuracy of retroactive payments.

Finding 5

    The Department of Public Safety approved system-calculated retroactive payments it knew were incorrect for 73 Minnesota Law Enforcement Association members before it conducted the required review of the calculations.

    The Department of Public Safety issued estimated retroactive payments to 513 Minnesota Law Enforcement Association members before verifying the amounts.

    The Department of Public Safety calculated and issued incorrect retroactive payments for 24 additional Minnesota Law Enforcement Association members. (p. 18)

    Recommendations

  • The Department of Public Safety should only approve system-calculated retroactive payments if it has reviewed the calculations for accuracy.
  • The Department of Public Safety should not process estimated retroactive payments.
  • The Department of Public Safety should strengthen internal controls to ensure the accuracy of retroactive payments.
  • The Department of Public Safety should obtain guidance from Minnesota Management and Budget on the mass retroactive pay adjustment process, when needed.

Finding 6

    The Department of Public Safety did not resolve incorrect retroactive payments to 187 Minnesota Law Enforcement Association members. (p. 19)

    Recommendations

  • The Department of Public Safety should resolve inaccurate retroactive payment errors for each employee identified.
  • The Department of Public Safety should strengthen internal controls to ensure the accuracy of retroactive payments.

More Information

Full Report (PDF) PDF Icon
Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : legislative.auditor@state.mn.us or 651‑296‑4708