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Fraud in Minnesota: Office of Legislative Auditor backs bill to increase oversight

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Published  March 25, 2026 5:11pm CDT
Fraud in Minnesota
FOX 9
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The Brief

    • Minnesota's Office of the Legislative Auditor is endorsing a bill that it says will overhaul how the state prevents and catches fraud.
    • If passed, it would include stronger oversight of the operations getting state grants and increase the mandated training for employees who process the grants. 
    • The new bill would prohibit state employees from working for a company they approved grant money to for at least a year after leaving the state agency. 

ST. PAUL, Minn. (FOX 9) - The state agency that’s called out fraud concerns for almost a decade now is finally getting the chance to try and implement some of its suggested fixes.

How MN's legislative auditor plans to stop fraud

How MN's legislative auditor plans to stop fraud

FOX 9's Mike Manzoni sat down with Minnesota's legislative auditor about how the state plans on stopping fraud.

Minnesota Office of Legislative Auditor bill on fraud detection

The Office of the Legislative Auditor, or OLA, is backing a bill to overhaul how state agencies work to prevent and catch fraud.

It includes stronger oversight for the operations receiving state grants, and it increases mandated training for state employees dealing with grants.

It also addresses something the OLA uncovered in an audit released in January.

They found some state agency employees had falsified documents for the audit, which was apparently a legal gray area, so the new bill would make that a felony.

What they're saying:

Legislative Auditor Judy Randall said, "Making it very clear to folks that cooperation with OLA and providing accurate and truthful information to OLA is important."

Minnesota substance abuse grants audit


 

Scrutiny over Minnesota fraud increases

Scrutiny over Minnesota fraud increases

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The backstory:

The January OLA report also found that the Behavioral Health Administration grant manager approved over $670,000 in payments to a company.

Shortly afterward, the state employee went to work for the organization that got the grant.

Under the new bill, state employees can’t follow the grant money they granted for at least one year after leaving the state agency.

The Source: This story uses information gathered from FOX 9 reporter Corin Hoggard at the Minnesota State Capitol and previous FOX 9 reporting. 

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