The Minnesota Legislative Auditor released a report on the COVID Frontline Worker Pay Program that found massive fraud and mismanagement by the government agency responsible for administering the program. Nearly $200 Million of the $500 Million program went to ineligible recipients or people committing fraud.
Here are the conclusions from the report:
Finding 1
The departments of Labor and Industry and Revenue approved frontline worker payments to applicants who were not eligible and to applicants whose eligibility we could not determine. (p. 14)
Finding 2
The Department of Labor and Industry approved frontline worker payments to individuals whose applications contained fraud indicators without investigating whether the applicants were legitimate. (p. 20)
Finding 3
The Department of Revenue did not verify the adjusted gross income for all applicants. (p. 23)
Finding 4
The Department of Labor and Industry and Minnesota Information Technology Services did not ensure that the contractor and subcontractors retained frontline worker pay data in accordance with contract provisions.
The Department of Labor and Industry and Minnesota Information Technology Services did not ensure that the retention of frontline worker pay applicant data was required by the Department of Labor and Industry’s records retention schedule or contracts with third parties. (p. 26)
