Senator Paul Utke (Park Rapids), Republican lead on the Senate Health and Human Services Committee, issued the following response to a financial audit report released this morning by the Office of the Legislative Auditor reviewing Minnesota Department of Human Services outstanding provider debt in Minnesota’s Medicaid program:

“This is just another example in a long string of failures by state agencies to do their job with the highest diligence and integrity,” Utke said. “The Department of Human Services is one of the largest and fastest growing areas of our budget. With a deficit looming, this is exactly the kind of waste Minnesotans expect us to stay on top of. Taxpayers should not pay higher taxes because DHS failed to comply with basic accounting practices and can’t afford to provide the health care services people need.”

“Minnesotans expect better from their government, and they are tired of the same excuses from Governor Walz and Democrats. There needs to be real accountability and leadership to see any change, but sadly, I don’t think the Governor has it in him,” Utke concluded.

According to the OLA report, DHS “did not comply with the significant finance-related legal requirements we tested and generally had inadequate internal controls” and did not attempt to recover more than $40 million – a conservative estimate – in overpayments to Medical Assistance providers. The report also states DHS “has not accurately reported its accounts receivable balance to Minnesota Management and Budget for inclusion in the state’s financial statements since 2019.”