Report Summary
Statewide Overtime and Shift Bonus Pay
Performance Audit
| Financial Audit Division |
November 2025 |
The departments of Human Services, Corrections, Transportation, Public
Safety, and Natural Resources generally complied with the criteria we
tested. However, we identified some instances of noncompliance and
internal control weaknesses in each of the agencies we audited related
to overtime expenditures and shift bonus incentives.
Finding 1
The Department of Human Services did not always accurately pay
overtime to employees in accordance with employment agreements,
resulting in overpayments. (p. 21)
Recommendations
-
The Department of Human Services and Direct Care and Treatment
should accurately pay overtime to employees in accordance with
employment agreements.
-
The Department of Human Services and Direct Care and Treatment
should collect the overpayments made to employees.
-
The Department of Human Services and Direct Care and Treatment
should strengthen internal controls to ensure it pays overtime in
accordance with employment agreements.
Finding 2
The Department of Corrections did not always accurately pay
overtime to an employee in accordance with employment agreements,
resulting in overpayments. (p. 23)
Recommendations
-
The Department of Corrections should accurately pay overtime to
employees in accordance with employment agreements.
-
The Department of Corrections should collect the overpayment made
to the employee.
-
The Department of Corrections should strengthen internal controls
to ensure it pays overtime in accordance with employment
agreements.
Finding 3
The Minnesota Department of Transportation did not always
accurately pay overtime to employees in accordance with employment
agreements, resulting in overpayments. (p. 24)
Recommendations
-
The Minnesota Department of Transportation should accurately pay
overtime to employees in accordance with employment agreements.
-
The Minnesota Department of Transportation should collect the
overpayments made to employees.
-
The Minnesota Department of Transportation should strengthen
internal controls to ensure it pays overtime in accordance with
employment agreements.
Finding 4
The Department of Public Safety did not always accurately pay
overtime to employees in accordance with employment agreements,
resulting in overpayments and did not always document overtime
eligibility for some employees. (p. 25)
Recommendations
-
The Department of Public Safety should accurately pay overtime to
employees in accordance with employment agreements and should
document overtime eligibility for applicable employees.
-
The Department of Public Safety should collect the overpayments
made to the identified employees.
-
The Department of Public Safety should strengthen internal
controls to ensure it pays overtime in accordance with employment
agreements and documents overtime eligibility for applicable
employees.
Finding 5
The Department of Natural Resources did not always accurately pay
overtime to employees in accordance with employment agreements,
resulting in overpayments, and did not always document overtime
eligibility for some employees. (p. 27)
Recommendations
-
The Department of Natural Resources should accurately pay overtime
to employees in accordance with employment agreements and should
document overtime eligibility for applicable employees.
-
The Department of Natural Resources should collect the
overpayments made to the identified employees.
-
The Department of Natural Resources should strengthen internal
controls to ensure it pays overtime in accordance with employment
agreements and documents overtime eligibility for applicable
employees.
Finding 6
The Department of Human Services:
-
Could not provide support to show Minnesota Management and
Budget’s approval of the shift bonus incentives it implemented.
-
Paid shift bonus incentives that were inconsistent with the
parameters established in the Memorandums of Understanding.
-
Did not properly document the eligibility criteria and parameters
of the shift bonus incentives. (p. 32)
Recommendations
If the Department of Human Services or Direct Care and Treatment
wants to provide employees a shift bonus incentive program, it
should:
-
Establish a program that is consistent with the parameters
outlined in the employment agreements.
-
Obtain required approval from Minnesota Management and Budget.
-
Ensure the parameters of any incentive are clearly documented,
including maximum bonus amounts per shift and per employee.
Finding 7
The Department of Corrections:
-
Could not provide support to show Minnesota Management and
Budget’s approval of the shift bonus incentives it implemented.
-
Paid shift bonus incentives that were inconsistent with the
parameters established in the Memorandum of Understanding,
including payments to ineligible employees.
-
Did not properly document the eligibility criteria and parameters
of the shift bonus incentives. (p. 36)
Recommendations
If the Department of Corrections wants to provide employees a
shift bonus incentive program, it should:
-
Establish a program that is consistent with the parameters
outlined in the employment agreements.
-
Obtain required approval from Minnesota Management and Budget.
-
Ensure the parameters of any incentive are clearly documented,
including maximum bonus amounts per shift and per employee.
