One state audit revealed that bonus checks intended for frontline workers during the pandemic were distributed to individuals who did not deserve them. Another audit criticized a Minnesota state agency for failing to prevent conflicts of interest in taxpayer-funded mental health and addiction programs. A third report highlighted inadequate oversight of a program designed to provide meals for needy children, which federal prosecutors claim led to the largest COVID-era fraud scheme in the nation.
However, when faced with these and other concerning instances of waste, fraud, and abuse, some state agencies operating under Democratic Gov. Tim Walz’s administration consistently downplayed or dismissed the allegations, according to the state’s nonpartisan auditor, Judy Randall, in an interview with CNN.
The outlet’s examination of audits—and the responses they elicited—along with interviews with statewide politicians and commentators, revealed that Walz has taken a hands-off approach regarding accountability for incidents of fraud and mismanagement during his tenure. Furthermore, some state agencies led by his appointees have reacted defensively to the audits in recent months, a response that Judy Randall, who has been with the department for 26 years, has found surprising.
This summer, Randall told a local media outlet that the responses from some agencies to her audits have recently had a “shoot the messenger” vibe. CNN examined over a dozen reports from her office that identified specific agencies as being responsible for permitting fraud, waste, or mismanagement during the Walz administration.
Some reports addressed high-profile scandals, including allegations of pandemic fraud and a troubled light-rail project—initiated before Walz’s tenure but currently overseen by 17 of his appointees—that has experienced over $1.5 billion in cost overruns. Randall’s office criticized that agency last year for its lack of transparency regarding escalating costs and its failure to justify the rising expenses of contractors.
Other audits identified weaknesses in safeguards against waste or raised specific conflict-of-interest concerns, such as a state Department of Public Safety employee receiving payments from a grant recipient that the employee oversees. Randall informed CNN that she has not seen any personnel changes linked to audits conducted by her office since Walz took office in 2019. Critics attribute this lack of accountability to Walz, who is now the Democratic candidate for vice president, the outlet noted.
“When he is not holding any commissioners responsible, then yes, Governor Walz is responsible for the fraud that has been ongoing in the state of Minnesota,” said Lisa Demuth, the state House GOP leader. “It falls squarely on his shoulders.”
There are also indications of resentment from the state agencies subjected to the audits. Randall noted that when her office reviewed a 2021 audit of the agency responsible for distributing grants related to mental health and addiction this year, it found that the agency had not addressed most of the concerns raised, including vulnerabilities related to conflicts of interest.
Some responses were more confrontational; for instance, a response from this summer regarding frontline worker bonus pay “disagreed with every single thing we said,” according to Randall. Additionally, Randall’s critique in June of the state concerning the high-profile meals-for-needy-kids case elicited what she perceived as a dismissive response from the state, CNN reported.
“The governor’s appointees across the board at almost all agencies have been hostile and uncooperative when citizens are seeking transparency and oversight through the legislative auditor,” said state Sen. Mark Koran, a Republican who serves as the vice chair of the state’s bipartisan?legislative audit commission. “The hostility is led by Governor Walz.”
Disclaimer: This article may contain commentary which reflects the author’s opinion.