A performance audit from the Office of the Legislative Auditor (OLA) found that Gov. Tim Walz’s office failed to adequately follow policies relating to receipts, inventory, and payroll.
An independent agency, the OLA audits programs and agencies across state government. The OLA primarily audits these entities to ensure that state laws, regulations, and policies are being followed with proper internal controls.
According to the OLA’s report, state auditors conducted a performance audit of the Office of the Governor and Lieutenant Governor that examined 30-months of operations from July of 2022 through December of 2024.
During that audit, the OLA “focused on whether the office had controls to ensure that it appropriately collected receipts and reimbursements from events held at the governor’s residence, appropriately spent state funds, accurately paid its vendors and employees, and safeguarded state resources.”
Ultimately, state auditors found Walz’s office did not adequately follow policies relating to property management and receipt management. Additionally, the OLA identified numerous vendor payment problems, found that the office lacked proper documentation to support various employee reimbursements, and said the office had payroll issues.
Specifically, the OLA flagged 12 different issues which included the office not recovering the costs of private events at the governor’s mansion, employees not receiving proper retroactive pay, the failure to keep an updated inventory of office electronics, vendors not being paid on time, and the governor’s office issuing inaccurate reimbursements.
The audit found no issues when it tested for any problems regarding the governor’s salary, the lieutenant governor’s salary, the salaries of staff who worked on the 2024 presidential campaign, and a variety of other topics.
In turn, the OLA made recommendations on how to correct the findings that were flagged.
In a letter responding to the OLA findings, Walz’s office said it agreed with almost all of the OLA’s findings and supported the auditor’s recommendations. Additionally, Walz’s office said many of the issues identified by the OLA were resolved before the audit began and 11 of the 12 issues have now been fully resolved.
The governor’s office also told the OLA that it has strengthened internal controls and increased employee training. According to the governor’s office, the audit “did not find any financial misuse or malfeasance.”
Minnesota politicians react to findings in performance audit
After the OLA’s report was released, Republican lawmakers were quick to criticize the Walz administration and referenced the state’s ongoing battle with fraud.
“When the Governor’s own office can’t follow basic financial controls—overpaying employees, losing state property, and stiffing vendors for months—it’s no wonder massive fraud is exploding across state government,” said Senate GOP Leader Mark Johnson.
Similarly, GOP House speaker and gubernatorial candidate Lisa Demuth said “after years of allowing fraud to run rampant in state agencies, we’re now seeing that the lack of internal controls and accountability measures extends even to the Governor’s office.”
“Here in Minnesota, accountability starts at the top,” she added. “It’s time for the Governor to take a hard look at the financial practices within his own office and take responsibility for cleaning up the noncompliance both in his office and across all his agencies.”
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
