Audit of MN Governor's Office finds late vendor payments and inaccurate reimbursements

ST. PAUL, Minn. (FOX 9) - A performance audit of the Office of the Minnesota Governor and Lieutenant Governor found multiple instances of noncompliance and internal control issues related to receipts, inventory, payroll, and other expenses. 

Office of Governor and Lieutenant Governor audit findings

Local perspective:

The Minnesota Office of the Legislative Auditor conducted a performance audit on the Governor’s Office and Lieutenant Governor’s office from July 1, 2022, through Dec. 31, 2024, focusing on financial compliance. The audit, released on Tuesday, found a "significant number" of instances of noncompliance and internal control deficiencies related to receipts, inventory, and payroll.

The audit identified 12 specific issues, including inadequate oversight of timesheet completion, improper management of receipts, and late vendor payments. The audit also noted unresolved issues from prior audits, such as improper management of vacation leave payouts and lack of documentation for paid parental leave eligibility.

The audit recommended several actions for the Office of the Governor and Lieutenant Governor. These include strengthening internal controls over receipts, timesheet approvals, and inventory management. It also suggested recovering overpayments and ensuring accurate payroll adjustments.

The full audit report can be found below.

The Governor’s Office response

What they're saying:

In a letter, the Governor's Office said it has resolved 11 of the 12 findings and implemented the audits recommendations. They noted that the audit did "not find any financial misuse or malfeasance," and several of the issues were isolated to 2022, many of which were addressed prior to the OLA initiating the review.   

"We have taken significant steps to improve internal controls to mitigate future issues by implementing strengthened standard operating procedures about documentation, billing, receipt management and reconciliation, and asset management. Moreover, we made strategic employment decisions to increase capacity and professionalize the office's operations function," the letter read. 

The Governor’s Office full response can be found below.