Governor Creates Four Pronged Plan to Prevent Fraud and Improve Oversight Following $250 Million Feeding Program Scandal

(KNSI) — Minnesota Governor Tim Walz has created a new position to help catch fraud in the wake of the $250 million Feeding our Future fraud scheme.

Earlier this year, Walz ordered multiple state agencies to review federal programs and find the best ways to improve state oversight over those programs.

The “four-pronged plan” adds an Inspector General at the Department of Education and more staff at six agencies, as well as expands the Office of Grants Management at the Department of Administration.

“Creating an Inspector General position within the Minnesota Department of Education is a critical step to ensuring proper oversight of federal funds,” Governor Walz continued. “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.”

Auditing resources will also be bolstered within the Internal Controls team at Minnesota Management and Budget. The state would also allocate 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.

“The BCA is committed to working with all state agencies to hold those accountable who seek to exploit programs designed to help Minnesotans in need,” said Bureau of Criminal Apprehension Superintendent Drew Evans. “Creating greater coordination, focused resources and strengthening these programs will ensure fraudsters are held criminally liable for their misdeeds.”

“The Governor’s initiative is a big step forward to making grants oversight better,” said MMB Commissioner Jim Schowalter. “With these proposals, we’ll have a simpler, less piecemeal approach to making grants and monitoring how the money is used.”

At the beginning of the COVID-19 pandemic, federal regulators relaxed grant oversight. Those regulations have since returned to pre-pandemic levels.

The Governor’s full biennial budget proposal will be released in January 2023.

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