Audit reveals major payroll errors for Minnesota law enforcement

In a recent government meeting held on July 25, 2024, legislative auditors presented findings regarding retroactive pay adjustments for law enforcement employees in Minnesota. The audit, led by Judy Randall and deputy legislative auditor Lori Lyson, was initiated following numerous complaints from employees of the Minnesota Law Enforcement Association (MLEA) who reported discrepancies in their pay adjustments after recent bargaining agreements.

The audit revealed significant issues across three of the four state agencies involved—specifically the Departments of Corrections, Natural Resources, and Public Safety—indicating that these agencies failed to implement the retroactive pay adjustments correctly. The Minnesota Management and Budget (MMB) was also found to lack adequate internal controls, complicating the payroll process further.

The audit covered payroll activities from July 1, 2021, to July 7, 2022, and highlighted that while the Department of Commerce managed to comply with legal requirements and correctly recalculated payments, the other agencies struggled with both compliance and internal controls. The overlapping nature of retroactive pay adjustments added complexity, as the state's payroll system could not automatically calculate these payments, requiring manual recalculations by agency staff within a tight five-day window.

The auditors recommended that MMB strengthen its internal controls to prevent future errors, particularly by ensuring accurate date parameters are set before initiating retroactive pay processes. The meeting included participation from several state senators and representatives, indicating a broader legislative interest in resolving these payroll issues for law enforcement employees. The findings underscore the need for improved oversight and management of payroll systems to ensure that state employees receive the compensation they are owed in a timely and accurate manner.