“Inadequate oversight” by the Minnesota Department of Education created opportunities for a massive fraud scheme that stole more than $250 million federal dollars meant for pandemic children’s meal programs, according to a state audit report published Thursday.
A report released Thursday from the Office of the Legislative Auditor found the education department failed to act on warning signs of fraud at the nonprofit Feeding Our Future and didn’t exercise its authority to hold the nonprofit accountable. The office said it found numerous instances when MDE didn’t monitor federal dollars it distributed closely enough, “especially given information it either had in its possession or should have obtained but did not.”
“MDE’s responsibilities under federal law ranged from providing guidance and training to Feeding Our Future staff, to terminating the organization’s participation in the programs if warranted,” said Legislative Auditor Judy Randall and Special Reviews Director Katherine Theisen in a letter attached to the report. “We believe MDE’s actions and inactions created opportunities for fraud.”
Seventy people have been indicted so far in connection with a quarter billion in stolen federal dollars meant to help feed needy Minnesota children during the worst of the COVID-19 pandemic. Federal authorities say much of the fraud centered around the nonprofit Feeding Our Future, which received federal dollars via the Minnesota Department of Education.
Pandemic funds
The money was supposed to reimburse nonprofits for meals served at locations like day care centers, after school programs. Federal prosecutors have said individuals involved with Feeding Our Future and another nonprofit, Partners in Nutrition, claimed to serve thousands of meals at locations that turned out to be deserted.
There was widespread fraud during the pandemic as the U.S. government provided billions in aid intended to soften the blow of economic disruptions linked to COVID-19. The case of fraud at Feeding Our Future is among the most significant cases, federal authorities have said.
Last week jurors found five of seven defendants on trial in connection to the scheme guilty of fraud. Authorities say the seven were responsible for a total of $40 million in fraud.
The Minnesota Department of Education Disputes the Legislative Auditor report finding that it had “inadequate oversight” and says it made referrals to law enforcement that resulted in criminal prosecutions.
“What happened with Feeding Our Future was a travesty — a coordinated, brazen abuse of nutrition programs that exist to ensure access to healthy meals for low-income children,” Education Commissioner Willie Jett said in a letter responding to the audit “The responsibility for this flagrant fraud lies with the indicted and convicted fraudsters.”
Check back for updates to this developing story.
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