Bill aims for consistency in reporting misuse of public funds

A seven-word change aims to create consistency in reporting misuse of public funds.

“HF1239 does something we think is really simple and is consistent with our effort to clarify reporting requirements for public agencies,” said Legislative Auditor Judy Randall. 

Sponsored by Rep. Duane Quam (R-Byron), the bill would require employees and officers of state agencies and other organizations subject to audit by the Office of Legislative Auditor to promptly report certain suspected wrongdoing to the office and law enforcement. Currently the only required reporting is to the office.

It was held over Tuesday by the House State Government Finance and Policy Committee for possible inclusion in a larger policy bill.

“This simply makes the requirement to report to the legislative auditor that are in (statute) consistent with the requirements for local governments to report to the state auditor,” Randall said.

“… We often when we hear some of these concerns tell the entity that you need to report that to law enforcement. This puts that information in law so that they know to do it immediately rather than simply having to go through us first.”

Supportive of the bill, Rep. Ginny Klevorn (DFL-Plymouth) nonetheless seeks greater clarification on what is defined as “law enforcement.”

“Does that mean I report to my local police? Who do we report to? Should it be reporting the BCA? … How do we define law enforcement or if we just say the practice that the auditor currently has is working sufficiently?”

Randall thinks the definition should be left open.

“It’s never wrong for whomever it is to contact the local police and they can direct to the right place. I have seen delays reporting to law enforcement that have been problematic.”

The bill would also strike language that provides an exception when “to do so would knowingly impede or otherwise interfere with an ongoing criminal investigation.”

Randall said people have used that as a reason not to report something.

“We’re bound by the Government Practices Act, we cannot share information with anybody who’s not allowed to see it,” Randall said.