Title: Minnesota's Education Department Criticized for Oversight Failures in $250 Million Fraud Scheme

In a scathing report released on Thursday, the Minnesota Department of Education (MDE) was heavily criticized for its major failures in overseeing the Feeding Our Future program, leading to the alleged misuse of federal funds during the pandemic. The state audit report, conducted by Minnesota's Office of the Legislative Auditor, revealed that the MDE did not properly supervise the nonprofit organization at the center of the $250 million COVID-19 relief scheme.

The Feeding Our Future program, which aimed to provide free and nutritious meals to children and low-income families, saw a drastic increase in federal funds it received. From $3.4 million in 2019, the program's funding skyrocketed to nearly $200 million in 2021, prosecutors said. The nonprofit's employees allegedly exploited the program for personal gain by recruiting individuals and entities to take advantage of the funds.

The audit report highlighted the MDE's inadequate oversight, stating that it failed to act on warning signs and was ill-prepared to address issues related to Feeding Our Future. The MDE's only review of the program, conducted in 2018, discovered serious findings regarding the program's compliance with regulations. However, a follow-up review was never conducted, the report revealed.

Furthermore, the MDE received numerous complaints about Feeding Our Future between 2018 and 2021 but failed to adequately investigate them. The audit pointed out that the department did not always verify the accuracy of the nonprofit's statements before approving its program applications.

Education Commissioner Willie Jett, in a written response to the report, disputed the claims of lax oversight laid out in the audit and instead blamed the individual defendants indicted in the fraud scheme. Jett emphasized that the responsibility for the fraud lies with the accused fraudsters and described the incident as a "travesty" and a gross abuse of nutrition programs.

Since making extensive findings about Feeding Our Future's shortcomings, the MDE reached out to various federal agencies for assistance, including the U.S. Department of Agriculture's Midwest Regional Office and the USDA's Office of the Inspector General. As of December 2020, the MDE ceased approving new applications from Feeding Our Future.

The audit report has put additional pressure on the MDE, with a group of Congress members demanding further information regarding the department's communication with the FBI. The report's release comes just a week after five out of seven defendants were found guilty of multiple financial crimes related to the COVID-19 relief scheme.

The trial was marred by an alleged incident of jury tampering, where a dismissed juror claimed she was offered a bribe of nearly $120,000 in cash in exchange for voting to acquit. The FBI is currently investigating this matter, as well as conducting further law enforcement activity related to the case.

In response to the audit findings, Commissioner Jett stated that the MDE's oversight of federal programs has been regularly reviewed and improved upon in recent years to enhance program integrity. As investigations into the fraud scheme continue, the MDE is expected to face scrutiny and pressure to strengthen its oversight systems to prevent future incidents of fraud and misuse of funds.