EDUCATIONMINNESOTA.ORG.

>> WE'VE GOT LOTS OF NEWS TO COVER THIS WEEK.

GOVERNOR WALZ HAS SIGNED A BILL GUARANTEEING ABORTION ACCESS INTO LAW.

WE REMEMBER FORMER U.S.

SENATOR DAVE DURENBERGER.

AND THE REPUBLICAN MAJORITY IN THE U. S. HOUSE HAS KICKED MINNESOTA REP. ILHAN OMAR OFF OF THE FOREIGN AFFAIRS COMMITTEE.

OUR POLITICAL SCIENCE PROFESSORS ARE HERE TO TALK ABOUT THAT.

>> Cathy: THAT IS A LOT.

BUT WE START WITH YESTERDAY'S LEGISLATIVE AUDITOR REPORT ON STATE GOVERNMENT GRANTS TO NONPROFITS.

EACH YEAR, STATE AGENCIES PROVIDE HUNDREDS OF MILLIONS OF DOLLARS THROUGH GRANTS TO ORGANIZATIONS.

THOSE AGENCIES ARE REQUIRED TO FOLLOW A SET OF OVERSIGHT AND ACCOUNTABILITY POLICIES.

YESTERDAY'S REPORT FOUND "PERVASIVE NONCOMPLIANCE" WITH THOSE POLICIES.

HERE WITH MORE, LEGISLATIVE AUDITOR JUDY RANDALL.

GOOD TO HAVE YOU BACK.

>> NICE TO BE HERE.

>> Cathy: THERE IS A STATE OFFICE OF GRANTS MANAGEMENT, RIGHT?

>> YES, THERE IS.

>> Cathy: WHY AREN'T THEY MANAGING?

>> WELL, THEY ACTUALLY DON'T HAVE THE AUTHORITY TO ENFORCE OR REALLY DO MUCH CHECKING ON HOW DIFFERENT AGENCIES DO GRANTS MANAGEMENT AND FOLLOW THE POLICIES.

THE OFFICE OF GRANTS MANAGEMENT REALLY HAS ONE STAFF PERSON WHO DEVELOPS POLICIES.

BUT OTHERWISE THE MANAGEMENT AND OVERSIGHT OF GRANTS IS HAPPENING OUT IN ALL OF THE STATE AGENCIES.

>> Eric: THIS IS AT LEAST THE THIRD TIME YOUR AGENCY HAS TAKEN A SWING AT THESE ISSUES WITH GRANTS.

WHY ISN'T SOMEBODY GETTING THE MESSAGE HERE?

>> I WOULD SAY IT'S ACTUALLY OUR 12th OR 13th TIME WE'VE TAKEN A SWING T THIS.

>> Eric: IT MAXIMUM MY QUESTION EVEN MORE POIGNANT, MAYBE.

>> WELL, WE AGREE.

AND THAT'S KIND OF WHY THIS TIME IN THIS REPORT, WE SAID, LOOK, WE HAVE DONE THIS OVER AND OVER AGAIN.

>> Eric: YEAH.

>> WE HAVE ISSUED EIGHT FINANCIAL AUDIT REPORTS THAT IDENTIFIED THESE TYPES OF PROBLEMS, TWO PROGRAM EVALUATIONS ACROSS DIFFERENT STATE AGENCIES, WITHIN THE THE SAME STATE AGENCY SEVERAL TIMES AND IT'S TIME TO TAKE A STATEWIDE LOOK AT THIS, A STATEWIDE APPROACH.

SO WE HAVE RECOMMENDATIONS, BOTH FOR -- WITHIN EACH STATE AGENCY, EXECUTIVE BRANCHWIDE, MAYBE THROUGH THE OFFICE OF GRANTS MANAGEMENT, AND THEN ALSO TO THE LEGISLATURE.

LET'S REALLY TACKLE THIS AND GET SERIOUS ABOUT IT.

>> Cathy: BECAUSE THIS KEEPS GOING ON, THIS IS OBVIOUSLY AN ONGOING PROBLEM, ARE WE TO ASSUME THAT THERE COULD BE WASTE, FRAUD, AND ABUSE?

HAPPENING?

>> THERE'S CERTAINLY THE POTENTIAL FOR IT.

THESE POLICIES ARE PUT IN PLACE TO MAKE SURE THE STATE FUNDS RE USED PROPERLY AND THEY'RE GIVEN TO ORGANIZATIONS THAT CAN HANDLE THIS RESPONSIBILITY.

AND IF AGENCIES AREN'T CHECKING ON THOSE THINGS, IF THEY'RE NOT MONITORING THAT THE MONEY WAS USED AS INTENDED, IF THEY'RE NOT CHECKING TO MAKE SURE THE GRANTEES ACTUALLY HAVE THE CAPACITY TO HANDLE THESE GRANTS, IT OPENS THE DOOR TO THOSE PROBLEMS.

>> Eric: A LOT OF BEHAVIOR IS BLAMED ON COVID.

AND I WONDER IF I OF THIS IS, WE GOT TO GET THE MONEY OUT THE DOOR QUICK PHILOSOPHY THAT HAPPENED DURING THE PANDEMIC.

>> THAT MAY EXPLAIN SOME THINGS IN SOME CASES.

THAT IS NOT WHAT HAPPENED FOR THE GRANTS THAT WE WATCHED IN THIS REPORT AND THEN WE LOOKED BACK OVER FIVE YEARS OF REPORTS.

SO PRE-COVID, ABSOLUTELY.

>> Cathy: ARE THESE THE LARGER AGENCIES GETTING INTO TROUBLE OR THE SMALLER AGENCIES?

>> IT'S ALL OF THEM.

IT'S ALL OF THEM.

I MEAN, IN OUR REPORT WE COMPILED THE FINDINGS WE FOUND OVER THE PAST FIVE YEARS, AND I WAS JUST LOOKING THROUGH IT, IT'S THE BIG ONES, DHS, HEALTH, EDUCATION, BUT IT'S ALSO SMALL ONES, IRRR, THE VETERANS ADMINISTRATION.

IT'S BIG AND SMALL, ARTS BOARD.

SO IT'S PERVASIVE.

AND THAT'S WHY WE USED THAT WORD.

>> Eric: NOW THEY'RE SAYING AT HOME, YOU HAVEN'T MENTIONED FEED OUR FUTURE.

>> THAT'S TRUE.

>> Eric: THIS IS NOT PART OF THIS, RIGHT >> FEEDING OUR FUTURE WAS NOT PART OF THIS REVIEW.

WE'RE DOING A SEPARATE REVIEW LOOKING AT THE DEPARTMENT OF EDUCATION'S OVERSIGHT OF FEEDING OUR FUTURE.

>> Eric: WOULD IT MATTER THAT IT'S FEDERAL MONEY INSTEAD OF STATE MONEY?

>> YEAH, THAT'S A GREAT POINT.

THERE ARE DIFFERENT REQUIREMENTS.

PART OF WHAT WE'RE DOING FOR THE FEEDING OUR FUTURE ONE IS LOOKING AT ALL THE FEDERAL REQUIREMENTS, THE WEAFERS THAT HAPPENED BECAUSE -- WAIVERS THAT HAPPENED BECAUSE OF PANDEMIC, SO IN THAT CASE THAT DOES COME INTO PLY.

>> Eric: UNDER YOUR REPORT, HOW MUCH MONEY ARE WE TALKING ABOUT, THAT LACKS ACCOUNTABILITY?

>> SURE, THAT'S THE RIGHT WAY TO APPROXIMATE OUT IT.

WE SAY THAT THERE'S OVER 500 MILLION DOLLARS EACH YEAR GRANTED OUT TO NONPROFIT ORGANIZATIONS.

>> Eric: WOW.

>> THAT'S JUST TO NONPROFIT ORGANIZATIONS.

THE STATE GIVES GRANTS TO OTHER ORGANIZATIONS AS WELL.

IT'S A LOT OF MONEY.

>> Cathy: IT'S A LOT OF MONEY.

SO NEXT STEPS WOULD BE WHAT?

>> WELL, OUR HOPE IS THAT NEXT STEPS ARE SOME ACTION HERE BY EITHER THE EXECUTIVE BRANCH OR THE LEGISLATURE OR BOTH.

>> Eric: IS THERE A POLITICAL BIAS ONE WAY OR THE OTHER, DOES ONE PARTY NOT WANT TO DO THIS AS MUCH AS THE OTHER PARTY?

OR IS IT A GROUP EFFORT?

>> SO I'M NOT THE RIGHT PERSON FOR THAT.

WE'RE NONPARTISAN.

>> Eric: SURE.

>> BUT I THINK THAT OVERSIGHT AND ACCOUNTABILITY IS A SHARED INTEREST BY EVERYBODY.

>> Cathy: OKAY.

>> Eric: AND TELL US ABOUT THE FEED OUR FUTURE REPORT.

WHEN IS THAT DUE, WHAT WILL YOU BE LOOKING AT THERE?

>> SURE.

THAT'S A SPECIAL REVIEW.

WE'RE LOOKING AT THE DEPARTMENT OF EDUCATION'S OVERSIGHT OF FEEDING OUR FUTURE, AND THAT GRANT, AND THAT WILL BE OUT LATER THIS YEAR, WE'RE HOPING FOR SUMMER.

>> Cathy: ALL RIGHT.

HIS YOU'RE A BUSY OFFICE OVER THERE.

>> WE ARE.