The Walz government reacted “hostilely” to the audit cascade

Judy Randall, the nonpartisan director of Minnesota's Office of the Legislative Auditor, said that several state agencies under the Walz administration repeatedly downplayed and ignored looming oversight deficiencies, according to a CNN report. Randall noted that she is not aware of a single agency employee or leader who has been fired or disciplined as a result of the regulator's startling reports.

Republican Party critics said the problems ultimately stemmed from the governor's mansion.

“If he doesn't hold commissioners accountable, then yes, Governor Walz is responsible for the fraud that has taken place in the state of Minnesota,” said Lisa Demuth, GOP leader of the Minnesota House of Representatives, according to the outlet. “It falls right on his shoulders.”

An audit released in June accused the state Department of Labor and Industry and the state Department of Finance of failing to properly vet recipients of the bonus paid to frontline workers during the COVID-19 pandemic. It was determined that approximately 40% of Minnesota residents who received the benefit may not have qualified to receive the benefit.

After the audit report, Randall said authorities responded that they “disagree with everything we said.” The DLI and the DOR are led by Walz representatives Nicole Blissenbach and Paul Marquart, respectively.

A second audit released the same month confirmed shocking failures by the Minnesota Department of Education in monitoring millions of dollars in federal Child Nutrition Program grants allocated to the nonprofit Feeding Our Future.

The organization led a number of groups that were said to be the pioneers in feeding low-income children across the state. Instead, it became embroiled in the nation's largest pandemic fraud scheme, stealing at least $250 million in federal funds. The comptroller's office's latest report came after the DOJ and FBI began investigations into the matter and ultimately filed federal criminal charges against at least 70 people.

Randall told CNN that the MDE, led by Walz-appointed Commissioner Willie Jett, rejected the report's findings.

“That’s not what MDE is about,” Jett said when asked if MDE had disciplined staff.

While Walz acknowledged that the review constituted a “fair criticism,” he said that Minnesota Star Tribune Earlier this year he said: “There is not a single public employee who has been involved in illegal acts.”

Another audit released in April found that the Minnesota Department of Human Services' Behavioral Health Division failed to follow policies on critical conflicts of interest. Additionally, DHS failed to complete financial assessments for more than 40% of the agency's grants (worth tens of millions of dollars), the audit shows. The review also found that DHS failed to implement 2021 recommendations after state auditors reported similar findings.

Brooke Cunningham, who heads DHS, is another Walz appointee.

Republicans in Minnesota say Walz failed to demand a high level of accountability from the state's commissioners.

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“The governor’s appointees in nearly every agency have been hostile and uncooperative when citizens demand transparency and oversight from the legislative auditor,” said Republican Sen. Mark Koran, the vice chairman of the state’s nonpartisan Legislative Audit Commission. “The hostility is led by Governor Walz.”

However, Walz's office said it has “implemented the vast majority of her suggestions” and that the governor “always takes her advice and recommendations seriously.”