A new performance audit by the Office of the Legislative Auditor (OLA) reveals widespread financial mismanagement in the Office of Governor Tim Walz and Lieutenant Governor Peggy Flanagan, with 12 findings of noncompliance, including late vendor payments, inaccurate payroll and reimbursements, missing documentation, and failure to track state assets.

Covering July 1, 2022, through December 31, 2024, the audit concludes the office “generally did not comply with the criteria we tested” and exposed significant internal control deficiencies across receipts, payroll, inventory, and nonpayroll spending.

“This nonpartisan report makes it clear that Governor Walz has created a culture where waste, fraud, and abuse are considered acceptable, from his own office down through state agencies,” said Senator Mark Koran (R–North Branch). “But Minnesotans don’t accept it.  The governor’s office should be a model of integrity, yet it’s setting the opposite example and allowing that culture to infect all levels of state government. Instead of embracing solutions to improve accountability, the Walz administration has blocked them at every turn in favor of performative attempts at transparency.”

The audit follows prior unresolved findings and comes amid ongoing scrutiny of state program oversight. The Governor’s Office claims most issues are resolved, but OLA notes several prior findings remain only partially addressed.

Watch the livestream of the Legislative Audit Commission.