Minnesota
Minnesota study finds fault with state agencies over pay adjustments
Yet another shortcoming of financial control has been found in Minnesota’s state government.
In a report released this week, the Office of the Legislative Auditor found that three state departments and Minnesota Management and Budget made mistakes in payments they made to employees to compensate them retroactively for raises they were due under a new labor contract.
As a result, many of the employees received inadequate compensation that took more than six months to recover, according to the OLA. In 30% of the cases that were found to be in error, the mistakes were not corrected. The OLA also found some employees were overpaid.
The report, now the third one within the past month uncovering financial management inadequacies in the state government, highlights limitations in the state’s payroll system, poor communication among state agencies, and an inability of those agencies to make payments to employees accurately and in a timely fashion.
The departments that were audited include the state Departments of Corrections, Commerce, Natural Resources and Public Safety, and the audit focused on payments made between July 1, 2021, and June 7, 2022, following a labor agreement between those agencies and the Minnesota Law Enforcement Association.
According to the report, the overall conclusions of the audit were:
- Minnesota Management and Budget did not have adequate internal controls over the parameters it established for the payroll system’s retroactive pay adjustment calculations.
- The Department of Commerce complied with the legal requirements related to the retroactive pay adjustments that the OLA tested and had adequate internal controls to ensure compliance with those legal requirements.
- The Departments of Corrections, Natural Resources, and Public Safety did not comply with the legal requirements related to the retroactive pay adjustments the OLA tested. Those departments also did not have adequate internal controls to ensure compliance with the legal requirements.
The OLA audit found those agencies either miscalculated or failed to resolve incorrect payments for 983 Minnesota Law Enforcement Association members of those agencies. This includes approving retroactive payments that the Department of Public Safety and the Department of Natural Resources knew were inaccurate for 234 employees.
The inaccurate payment totals for each agency range from $258 at the Department of Corrections to $28,911 at the Department of Public Safety.
While the payment totals are minuscule compared to payroll totals at each agency, the report comes on the heels of two OLA audits released earlier this year detailing mismanaged state agencies, including $250 million in fraud due to a lack of oversight by the Minnesota Department of Education regarding a food program and $205 million in unverified payments to people through a Frontline Worker Pay bonuses program in 2023.
When performing its audits, the OLA usually finds that an agency can improve a process, according to Deputy Legislative Auditor Lori Leysen. She said she could not think of a report her office released in the past few years that didn’t have at least one issue, though the severity levels have differed.
“Our job is to really show where there are areas for improvement and to try to help the government find ways to make those improvements,” Leysen said.
In its report, the OLA recommended agencies adhere to legal requirements, fix inaccurate payments when known and strengthen internal controls.
Also included in the report are responses from four of the five audited agencies that agreed with the OLA’s report and said they would follow the recommendations.
A response from the Department of Commerce, which was found in compliance, was not included in the report.
The report will also be presented to the Legislative Audit Commission on Thursday, July 25, at 10 a.m. and livestreamed on YouTube.
OLA Retroactive Payments Report by Mark Wasson on Scribd
Minnesota
Minnesota DHS whistleblower details ‘smear campaign’ after reporting fraud concerns to state
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A Minnesota Department of Human Services (DHS) whistleblower said she has been raising red flags about fraud in the state since 2019, but has faced only unyielding retaliation in response, calling Gov. Tim Walz’s assertion that he was unaware of the problem “absolutely false.”
Faye Bernstein, who has worked for Minnesota’s DHS for two decades in contract management and compliance, said she was subjected to a “smear campaign” for trying to make leadership aware of illegal contracting practices. She said she was called “racist” and that her work responsibilities were diminished.
MINNESOTA GOV WALZ, AG ELLISON TO TESTIFY IN HOUSE INVESTIGATION INTO ALLEGED $9B WELFARE FRAUD
A whistleblower from within the Minnesota Department of Human Services said the backlash said she escalated her fraud concerns to the governor’s office, but faced only retaliation as thanks. (Stephen Maturen/Getty Images)
“There is just a continuous effort to stifle you, to shut you up. And it is impossible to overcome,” Bernstein said on “Saturday in America.”
Federal prosecutors estimate that up to $9 billion was stolen through a network of fraudulent fronts posing as daycare centers, food programs and health clinics. The majority of those charged, so far, in the ongoing investigation are part of Minnesota’s Somali population.
Rather than receiving thanks for speaking out about irregularities within the contracting process, Bernstein wrote in a letter obtained exclusively by “Saturday in America” that the “nearly unbearable retaliation” she faced also included being “trespassed from all DHS-owned or leased property” and investigated “at a great cost to the state.”
CHILDCARE EXPERT EXPOSES KEY ROADBLOCK TO UNCOVERING POTENTIAL FRAUD SCHEMES IN MINNESOTA: ‘REALLY DIFFICULT’
A Minnesota Department of Human Services whistleblower said the backlash she faced when trying to escalate reports of fraud was “impossible to overcome.” (Chip Somodevilla/Getty Images)
Bernstein said she consistently raised concerns internally and escalated them “to the Governor’s Office and external oversight bodies,” but the response was always the same.
“It was that I was, in fact, the bad employee,” she said, and claimed she notified leaders in multiple departments so many times that she was becoming embarrassed about sounding like “a broken record.”
“It’s been sometimes just downright embarrassing to go on and on about this. So to say that leadership was not aware, or the governor was not aware is — I can tell you that is absolutely false.”
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Bernstein said she identified as a Democrat and had only voted for Democrats, but that the fraud in Minnesota was not being invented by Republicans, pushing back on Walz’s description of the allegations as “make-believe.”
“I see this every day… and it is not make-believe. And as far as my being a Democrat, right now, we have to have a governor who is willing to tackle this. And it doesn’t matter if they are Republican or a Democrat.”
Fox News Digital’s Stephen Sorace contributed to this report.
Minnesota
Cole Reschny leaves UND’s 4-1 win over Minnesota Duluth with an injury
DULUTH, Minn. — UND freshman Cole Reschny had a step on Minnesota Duluth’s Brady Cleveland.
Reschny skated toward the net with 3:51 to go in the second period, Cleveland slashed him and they both crashed into the end wall.
Reschny didn’t get up.
Silence fell over AmsOil Arena. Ben Strinden and Dylan James immediately checked on their teammate who was in obvious pain. Athletic trainer Mark Poolman rushed onto the ice.
And everyone wearing green in Duluth, Grand Forks or wherever they follow their favorite team held their breath as Reschny left the ice without putting weight on his left leg.
But after UND’s 4-1 win over Minnesota Duluth on Saturday in AmsOil Arena, UND head coach Dane Jackson gave a positive update.
“Positive thing is I don’t think there’s anything major structurally,” UND coach Dane Jackson said. “It’s early but I think it looks more like a contusion than ligament damage, so that’s the initial look, it’s positive. But we don’t want to get too far ahead of ourselves. Doc did a basic evaluation here. I’m sure we’ll get some images of it. But I think that’s the positive — it didn’t look like there was any ligament damage.”
After the game, Reschny was walking gingerly on his own power — without a brace or boot.
Clint Austin / Duluth Media Group
Reschny, a first-round pick of the Calgary Flames and one of the best prospects in all of college hockey, is having a standout rookie year with the Fighting Hawks.
He’s centering one of the top lines and playing in every situation — power play, penalty kill. He has four goals and 25 points in 23 games, while winning 55% of his faceoffs.
UND could use Reschny back as soon as possible, especially for the Penrose Cup chase.
The Fighting Hawks are at home the next two weekends for series against Miami University and St. Cloud State. Then, they close the regular season on the road at Western Michigan.
“Obviously, it sucks watching one of your best players go down like that,” Wiebe said. “It’s unfortunate. Hope that he can come back soon. I really don’t know what he’s got. But I think it kind of sparked something in us to play for him. I think that’s exactly what we did. We responded well after that. We played well, we got a couple of big goals and it obviously led us to victory there.”
The game was scoreless when Reschny left with an injury, but UND scored four times in the third to grab four National Collegiate Hockey Conference points on the weekend and a series split.
Mac Swanson and Will Zellers each scored a goal and added an assist during a five-minute major power play. Wiebe tallied three assists. Dylan James scored twice, including an empty-netter to clinch it.
“When (Reschny) went down, obviously, he’s a great player for us, one of our better forwards,” Swanson said. “You kind of just automatically think you’ve got to pick up the slack a little bit. We talked about it between periods going into the third period that we’re going to have to pick up some of his minutes and stuff, and I thought we did a really good job.”
Goaltender Jan Špunar stopped 25 of 26 shots, including 16 in the first period as UND took three minor penalties.
“We came for six points, we got four,” Špunar said. “Not bad.”
UND clinched home ice for the NCHC quarterfinals.
“Tough seeing Resch go down, obviously,” Jackson said. “But I liked the fact that we kind of settled in and said, ‘Hey, we’re all right here. Let’s just play our way and get back to it a little bit better. I thought we did a nice job of getting a little simpler with our puck management. Special teams were outstanding.”
Clint Austin / Duluth Media Group
Schlossman has covered college hockey for the Grand Forks Herald since 2005. He has been recognized by the Associated Press Sports Editors as the top beat writer for the Herald’s circulation division four times and the North Dakota sportswriter of the year twice. He resides in Grand Forks. Reach him at bschlossman@gfherald.com.
Minnesota
Minnesota weather: Seasonable temperatures Saturday, warmer Sunday ahead
MINNEAPOLIS (FOX 9) – Expect seasonable temperatures on Saturday with a nice warm-up starting on Sunday.
Saturday forecast
Local perspective:
Clouds slowly increase throughout the day with a little breeze out of the southeast this afternoon.
Temperatures stay chilly to the north and east, with mid-20s expected for the Twin Cities.
A southeast wind will help boost temperatures to be a touch warmer in southwestern Minnesota this afternoon.
Extended forecast
What’s next:
Temperatures stay mild on Saturday night for all of Minnesota and then trend warmer on Sunday.
The warm trend will be the theme of this forecast, with peak temperatures reaching into the lower 40s on Monday, then near 40 on Tuesday, followed by the mid-30s to close out the rest of the work week.
The Source: This story uses information from the FOX 9 weather forecast.
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