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Gov. Tim Walz (D-MN)
ST. PAUL, Minn. (KFGO/WCCO) – Gov. Tim Walz is calling for a new action plan to prevent fraud and improve oversight of federal grant dollars in the wake of the Feeding Our Future fraud scandal.
Following the administration’s earlier directive to state agencies to identify areas of improvement, the Governor has now released a plan that includes a package of budget proposals.
“I am committed to rooting out and stopping fraud,” Walz said. “We need to protect taxpayer dollars. This plan will help ensure that state government works as efficiently and effectively as possible to improve the lives of Minnesotans, while creating new tools to catch fraudsters and hold them accountable.”
According to the Walz Administration, the four-pronged plan will enhance enterprise-wide grant oversight and enforcement. While the Walz-Flanagan Administration can implement some of the state agencies’ recommendations on its own, most of the proposals will require new legislation.
Those plans include:
- Expand and strengthen enterprise grants management. The Governor’s plan would expand the Office of Grants Management at the Department of Administration, ensuring the office has the resources it needs to provide policy leadership over all types of grants. The Governor will also seek additional agency capacity for grant administration and oversight. The Governor is also requesting that the legislature fund the development of a roadmap for a statewide grants management system. Such a system would help agencies identify and root out bad actors across agencies and grant programs.
- Enhance resources for internal controls and oversight. The Governor will seek additional enterprise-wide auditing resources, which would be housed in the Internal Controls team at Minnesota Management and Budget. The Governor is also proposing resources for a coordinated approach to criminal investigations through the Bureau of Criminal Apprehension to track and investigate allegations of fraud in state-administered grants.
- Target additional resources at key agencies and programs. The plan would strengthen individual agencies’ grants management programs. For example, a new Inspector General at the Department of Education and contracting staff at agencies will ensure grants have appropriate agency oversight. The Governor proposes adding staff at six agencies to enhance oversight and accountability.
- Seek federal changes. Minnesota will request changes in federal practices to reduce risk of fraud in federal programs. There are gaps in training, oversight, and federal standards that, if addressed, would reduce opportunities for fraud and misuse of funds. For example, the federal government should clearly define the process for withholding payments from grantees that are not compliant with grant requirements and should develop a one-stop option for reporting fraud.
“Creating an Inspector General position within the Minnesota Department of Education is a critical step to ensuring proper oversight of federal funds,” Walz said. “I look forward to working with the state legislature and the federal government to ensure Minnesota’s state agencies have the guidance and resources they need to prevent fraud.”
The Governor’s full biennial budget proposal will be released in January 2023 after the legislative session begins.
The governor and current administration has been criticized for not stopping the fraud perpetrated by Feeding Our Future sooner. Walz’ opponent in the Election, Dr. Scott Jensen, asked for an investigation into what the governor knew, and asked questions about the state Department of Education continuing payments to Feeding our Future after they learned that fraudulent activity was taking place.
The Department of Education said it continued payments under a judge’s order, and the governor said it continued at the direction of the FBI.
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