Koran Criticizes Walz Administration for Mismanagement and Legal Non-Compliance in Recent OLA Report

State Senator Mark Koran (R-North Branch) released a statement following the recent report from the Office of the Legislative Auditor (OLA) which detailed more mismanagement of taxpayer resources and non-compliance with finance-related legal requirements by the Walz Administration.

“This is yet another report that reveals the significant shortcomings in the Walz Administration’s management of taxpayer dollars,” Koran said. “Providing proper oversight and internal controls are a fundamental duty of any government. This systemic failure and lack of accountability demonstrates another example of complete carelessness with taxpayers’ dollars.”

The audit found that state agencies did not have the knowledge, expertise, or resources to accurately provide retroactive payments to some Minnesota Law Enforcement Association employees. Their findings included:

  • Problems with the state’s payroll system
  • Poor communication between agencies
  • Difficulty in making accurate and timely payments to employees
  • Failures to properly review payment amounts before approval

The OLA’s report included several recommendations moving forward, which included:

  • Using correct date parameters and having experienced staff review the process
  • Strengthening internal controls to ensure the accuracy of retroactive payments
  • Only approving back payments after thorough review and without the use of estimated payments

The audit concluded that 30% of employees reviewed by the OLA still had unresolved and inaccurate payments.

“The use of incorrect date parameters, failing to properly review payments before approval, and the use of estimated payments in the review process are blatant fiscal errors. Employees trust their employer to provide them with accurate pay, and now those employees are being asked to pay back the state at no fault of their own. These failures need to be fixed quickly and efficiently, and I hope agency commissioners have solutions, not excuses, to share with the Legislative Audit Commission hearing in two weeks,” Koran continued.

The Legislative Audit Commission will hear the OLA’s presentation on this report on July 25th, 2024, at 10am.