November 14, 2017 10:42 PM
The Minnesota Sports Facilities Authority told KSTP the certified public accounting firm, WayPoint, Inc., is conducting a forensic audit of Monterrey Secruity's billing and payroll practices.
An independent audit of Monterrey's hiring practices completed by the Maslon Law Firm recently concluded the security company hired convicted felons and failed to conduct proper background checks for dozens of employees who provided security at U.S. Bank Stadium over a 14-month period.
In the Maslon report, there were allegations of improper billing and fraudulent payroll expenditures, which has now lead to the forensic audit by Waypoint.
State Rep. Sarah Anderson, (R) Plymouth, chairs the House Government Finance Committee and said the allegations of overbilling and misrepresentation of employees by Monterrey is "troubling for Minnesota taxpayers."
"I welcome this audit and think SMG, the contractor who hired Monterrey Security, is doing the right thing by hiring WayPoint to find out how much taxpayers paid out that was unnecessary and to try and recoup any money that was wrongfully paid out," Anderson said.
Monterrey Security declined comment, but a spokesperson for the company's public relations firm, Kivvit, in Chicago, issued this statement:
"Monterrey repeatedly expressed a desire to work with SMG to ensure that all billing has been appropriate and accurate. The contracts gave SMG the right to perform an audit. But instead of requesting one, SMG made reckless public accusations against the only minority-owned security firm in the NFL."
Anderson said the accusations of Monterrey billing the state for employees who did not exist is particularly troubling, and could put the state and Monterrey in the cross hairs of the IRS.
"If those accusations of the state paying Monterrey for employees who did not exist prove to be true, that could mean tax penalties for the state and that would mean taxpayers would pay those penalties," Anderson said. "I do not think they should have to be asked to do that."
The Minnesota Sports Facilities Authority's chairperson was unavailable for comment.
Anderson said she expects the financial audit done within two months.
Updated: November 14, 2017 10:42 PM
Created: November 14, 2017 09:38 PM
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