Executive Summary – Roadmap to Program Integrity and Fraud Prevention (Minnesota, 2026)

Minnesota administers billions of dollars annually in state and federal programs designed to deliver critical services to millions of residents. The complexity, scale, and decentralized nature of these programs create ongoing vulnerabilities to fraud, waste, and abuse. Recent investigations and historical audits reveal that persistent weaknesses in oversight, data sharing, enforcement, and program design have been repeatedly exploited by organized networks of dishonest providers, intermediaries, and recipients—resulting in significant financial losses, erosion of public trust, and inadequate services to vulnerable populations.

Recognizing these systemic issues, the state’s Director of Program Integrity prepared this Roadmap to establish a coordinated, enterprise-wide strategy to prevent, detect, and respond to fraud across all executive agencies. The roadmap is designed not simply as a response to past failures but as a forward-looking, proactive framework that shifts Minnesota’s approach from reactive enforcement to prevention, supported by accountability, culture change, technological modernization, and cross-agency collaboration.

Purpose and Methodology

The roadmap’s purpose is to ensure every public dollar is spent as intended, strengthening public confidence and protecting taxpayer resources. To develop its recommendations, the Program Integrity team conducted an independent review beginning in January 2026, including:

• Reviewing agency documents and audits;

• Interviewing current and former state employees, leadership, whistleblowers, providers, and private citizens;

• Assessing historical findings and fraud trends across agencies.

This work confirmed that Minnesota has experienced long-running fraud schemes, often enabled by inadequate internal controls and opportunities that arise from weak oversight, inconsistent enforcement, and organizational culture that historically emphasized service delivery over compliance.

Nine Pillars of Reform

The heart of the roadmap is its nine pillars of reform, each with targeted recommendations for strengthening program integrity:

1. Leadership, Accountability, and Culture

A strong integrity culture is foundational. The roadmap calls for:

• Clear expectations and visible commitment from leadership, with fraud prevention prominently featured in mission statements and public communications;

• Accessible reporting mechanisms and recognition programs for fraud detection;

• Mandatory fraud-prevention training and accountability measures for all employees and supervisors;

• Tone at the top set consistently by the governor and agency leaders;

• Independent reviews of past failures to act, with disciplinary or corrective action as appropriate.

These measures aim to shift agency culture toward accountability and vigilance while supporting ethical conduct.

2. Program Processes and Controls

Robust controls and consistent processes are essential. Recommendations include:

• Assessing and streamlining program structures to reduce unnecessary complexity;

• Strengthening enrollment and screening (e.g., criminal history checks, address verification, and mandatory access to provider records);

• Standardizing documentation and recordkeeping;

• Implementing compartmentalization and checks-and-balances to prevent conflicts of interest;

• Using universal identifiers for providers, grantees, and recipients to detect duplicates and cross-program fraud.

This pillar emphasizes design that anticipates abuse opportunities and embeds control measures throughout program lifecycles.

3. Administrative, Investigative, and Prosecutorial Coordination

The state must strengthen its ability to detect and respond to fraud. Key actions include:

• Centralizing fraud tip intake and triage to a single statewide repository;

• Forming multidisciplinary teams with law enforcement and agency experts;

• Developing a “Trusted Provider” risk matrix to prioritize oversight;

• Enhancing enforcement tools, including authority for unannounced site visits and swift suspension of funding;

• Pursuing recovery of misused funds and expanding prosecutorial capacity.

This ensures a unified, efficient response when fraud indicators arise.

4. Training and Workforce Development

Educating staff across agencies is critical. The roadmap recommends:

• Enterprise-wide standardized training on fraud red flags, escalation procedures, and compliance responsibilities;

• Expertise-based modules for high-risk programs and supervisors;

• Utilizing state human resources and training divisions to cultivate analytic and investigative competencies.

These investments strengthen the state’s internal capacity to both prevent and identify fraud.

5. Legislative Actions

Statutes and budgets must support modern fraud prevention. Recommendations include:

• Embedding fraud-prevention components and dedicated funding in all relevant bills;

• Avoiding direct appropriations or grants without administrative fraud-prevention funding;

• Upholding guardrails to prevent undue legislative influence on program administration;

• Clarifying due-process frameworks for stop-payment and suspensions.

These reforms align legal authority with practical enforcement needs.

6. Technology and Data Modernization

Modern threats demand modern tools. Major recommendations:

• Expand cross-agency data sharing and analytics capabilities;

• Deploy real-time monitoring tools (e.g., electronic identifiers, verification technologies);

• Leverage AI and data analytics to flag anomalies and prevent fraud early.

This pillar is crucial for scaling prevention beyond manual oversight.

7. Oversight and Independent Monitoring

Reform success hinges on enforcement and transparency:

• Establish executive-branch oversight structures and compliance committees;

• Require quarterly integrity reporting with public access;

• Appoint independent monitors or auditors to enforce accountability;

• Set measurable performance goals and consequences for unmet benchmarks.

This creates sustained oversight rather than episodic reviews.

8. Stakeholder Collaboration and Engagement

Protecting services for legitimate participants is essential. The roadmap recommends engaging providers and the public to ensure fraud-controls are effective but not unduly burdensome, publishing fraud warnings in multiple languages, and ensuring transparent appeal processes.

9. Resource and Capacity Building

Sufficient resources underpin all reforms. Actions include expanding auditors, data analysts, and strengthening the Office of Grants Management, while prioritizing technology investments.

Conclusion

Minnesota faces significant and evolving fraud risks that require a coordinated, enterprise-wide response. This roadmap provides a comprehensive, actionable framework to transform the state’s prevention, detection, and enforcement systems—protecting taxpayer dollars and essential services while restoring public trust. With sustained executive and legislative leadership and cross-agency collaboration, Minnesota can build a modern, resilient system that proactively safeguards public resources.