ST. PAUL – House Republican Speaker-designate Lisa Demuth, R-Cold Spring, is calling for heightened state agency accountability and better accounting after yet another non-partisan audit revealed serious mismanagement and lost taxpayer revenue in Minnesota.
This time, a report issued Tuesday by the Minnesota Office of the Legislative Auditor indicates the Department of Human Services “did not comply with the significant finance-related legal requirements we tested and generally had inadequate internal controls,” has not attempted to recover substantial overpayments totaling more than $40 million to Medical Assistance providers, and has not accurately reported its accounts receivable balance to Minnesota Management and Budget for inclusion in the state’s financial statements since 2019.
“It’s shocking that the Department of Human Services still does not have processes in place to stop and prevent waste of taxpayer dollars,” Demuth said. “Even more concerning are the apparent accounting practices that are inaccurate at best, or deceptive at worst. DHS is failing at its basic responsibilities, and once again there has been no accountability from Gov. Walz or Commissioner Jodi Harpstead.”
Demuth said House Republicans committee chairs are sending formal letters to all 25 state agency commissioners, requesting detailed information on department expenditures, potential areas for cost savings, how to increase efficiencies, and areas for budget reductions within their agencies. This is the first step in House Republicans’ efforts to rein in out-of-control spending and stabilize Minnesota’s long-term budget outlook, she said.
“Until agencies and commissioners are held accountable for their failures to follow basic accounting practices under state law, these problems will continue,” Demuth said. “One of House Republicans’ top priorities next session will be to stop waste and fraud in our agencies; DHS is clearly at the top of the list and should expect more scrutiny in the coming weeks and months.”
This audit is just the latest in a series of reports Demuth said reveal rampant fraud and waste in Minnesota departments and programs, from Feeding our Future to childcare assistance, frontline worker pay, and DHS and the Department of Education, costing Minnesota taxpayers hundreds of millions of dollars.
The full OLA audit regarding DHS mismanagement is available at https://www.auditor.leg.state.mn.us/.
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