During the 2025 legislative session, Sen. Jordan Rasmusson (R-Fergus Falls) and Rep. Jim Nash (R-Waconia) championed an initiative to strengthen oversight of state agencies and safeguard taxpayer dollars. House File 3 helps to ensure that state agencies implement audit recommendations from the Office of the Legislative Auditor (OLA) to improve accountability and transparency. The OLA is a nonpartisan office that conducts financial, program and special reviews of state agencies to promote efficient and effective government.

“With rampant waste, fraud and abuse in our state government, it is essential that we have transparency into agencies’ actions and inaction regarding OLA reports,” Rasmusson said. “Minnesotans deserve to know if audit recommendations are being followed, and this law is an important check to hold government accountable.”

On Friday, Jan. 30, the OLA released the first implementation report required under HF 3. The report describes the implementation status of audit recommendations issued to 20 executive branch agencies, the Judicial Branch and the Minnesota Legislature. While many recommendations have been implemented, the report also shows that a significant number remain unresolved. The recommendations stem from 31 OLA reports released between 2022 and 2025.

“Recent comments and actions by state agencies show a growing recognition that OLA reports are meaningful tools for improvement and accountability,” Nash said. “The development of clearer frameworks to respond to audit findings and track progress is an encouraging shift that strengthens oversight and helps prevent fraud caused by weak internal controls. While there is still considerable work to be done, I am encouraged by the change in tone and engagement we are beginning to see.”

 HF 3 established an annual process requiring Minnesota Management and Budget to submit a September report detailing the status of OLA recommendations issued over the previous five years, followed by a February report from the OLA to the Legislature. The structure ensures transparency and continued oversight, particularly for recommendations not yet implemented.