Reporting Instruction Manual
Audits and reviews

Understanding audits and reviews

The Retirement Act states that the Michigan Office of Retirement Services (ORS) will manage the retirement plan. This law also allows ORS to perform audits and reviews. The audits and reviews make sure every reporting unit sends the right data to ORS.

The goal of ORS is to provide a safe, secure, and accurate retirement system. Because of this, ORS might choose your reporting unit for a routine audit. During a routine audit, ORS will look at records that back up the data you reported. A targeted audit looks closely at specific records. These records include demographics, pay, years of service, and money paid into the system.

Common types of audit or review

ORS performs several types of reviews. We may also conduct other checks to make sure the system works correctly.

• Contract Review: ORS checks workers' contracts and pay. This confirms that the reported pay that counts toward retirement matches what the workers' contracts show.
• Annual Wage Review: ORS checks pay raises for small groups. This ensures the raises follow rules regarding salary increases.
• Compensation Determinations: ORS reviews records to decide which pay counts as reportable pay.
• Inactive Charter Affidavit Review: ORS ensures all charter schools report data correctly.
• Independent Contractor: This check ensures that contracted workers and third-party hires are reported the right way.
• Michigan Public School Employees' Retirement System Under 19: ORS checks that student workers younger than 19 are reported correctly.
• Payroll Audit: This check ensures reporting units send full data for pay, service, and worker details.
• Professional Services Leave Audit: ORS checks that reporting units report leave time according to the law.
• Reporting Authorization and Administrator Audit: This is a yearly check of website access and contact info for payroll staff and school leaders.
• Settlements Review: ORS looks at legal payout deals to see if the money counts toward retirement.
• Weekly Workers' Compensation Audit: ORS does a full check of wages and hours reported with the 8000 employment class code.