The Office and the Legislative Auditor released their audit report on the 2022 Frontline Worker Pay Program, which aimed to support workers during the COVID-19 pandemic. Republicans decided on the total funds, while Democrats set eligibility criteria. program’s administration has some serious issues. $205 million in fraud and the reduction of promised payments from over $1,000 to $487 due to fraudulent claims.
The report revealed significant lapses in the verification process, making it easy for individuals to file false claims. Fraud indicators included multiple claims with variations of the same email address, payments to the same bank account, and claims lacking basic income information.
We need immediate improvements in government oversight, stating that the administration should prioritize fraud prevention from the outset. The report recommended several measures for the Department of Labor and Industry (DLI), Revenue (DOR), and Minnesota Information Technology Systems (MN.IT), including:
- Verifying the eligibility of applicants whose status could not be confirmed,
- Recouping payments made to ineligible applicants or those using another person’s identity,
- Implementing additional methods to verify adjusted gross income,
- Ensuring data retention requirements in contracts and maintaining necessary data for program decisions.
During a hearing, agency commissioners defended their actions, often blaming vendors or legislators for the rush to distribute payments. By 2022, the urgency of the pandemic had passed, and accuracy should have taken precedence over speed in payment distribution.
This audit report follows a recent conviction of five individuals for defrauding $49 million in COVID meal reimbursements, part of a larger $250 million fraud case mentioned earlier.