MINNEAPOLIS— A legislative auditor report released Thursday found the Minnesota Department of Education’s oversight of Feeding Our Future, the nonprofit accused of defrauding $250 million during the COVID-19 pandemic, was “inadequate” and ‘created opportunities for fraud’.
The 120-page report details the ways the department failed to respond to previous warning signs about the nonprofit and was ill-prepared to hold Feeding Our Future accountable even before the pandemic hit.
Federal authorities have called the case “the largest pandemic fraud in the United States” as members of the nonprofit are accused of using money from two federal nutrition programs for luxury cars, jewelry, travel and property, while only one fraction went to food. low-income children.
The two programs are funded by the U.S. Department of Agriculture to serve meals to child care centers and day care centers, among others. “Sponsors,” including Feeding Our Future, manage locations where the meals are served and are monitored by the Minnesota Department of Education.
The report found that the Minnesota Department of Education’s last review of Feeding Our Future took place in 2018, and while serious problems were found with the nonprofit’s operations — including its failure to collect enrollment information from sites — there did not follow up.
Over the course of several investigations, the department found that Feeding Our Future lacked financial resources and dedicated accounting staff, and noted that staff salaries were above average.
Still, the auditor said the nonprofit managed more than six times as many sites in 2019 than the average multisite sponsor. The department’s payments to Feeding Our Future also increased 2,800% between 2020 and 2021.
Between June 2018 and December 2021, the department received more than thirty complaints, which must be investigated by law. But the department’s investigative procedures were “of limited use” in the context of alleged fraud, the auditor found. At one point, the education department asked Feeding Our Future to investigate complaints about itself.
The Ministry of Education pushed back, saying the pandemic complicated oversight procedures, and there was a lack of guidance from federal authorities on how to implement pandemic-era processes. Still, the auditor said the department failed to respond to warning signs prior to the pandemic and “could have taken decisive action sooner in the relationship with Feeding Our Future.”
Commissioner of Education Willie Jett said the department “disputes the OLA’s characterization regarding the inadequacy of MDE’s oversight.”
“MDE’s oversight of these programs met applicable standards and MDE made effective referrals to law enforcement,” he added.
In response to the findings, the auditor made numerous recommendations, including that the department should take additional steps to verify information, conduct follow-up assessments and revise its complaint investigation procedures.
The Legislature should also establish criteria, or allow the department to create criteria, for it to consider when determining eligible recipients for federal nutrition program funds, the auditor said.
The auditor released the report several days later five people were found guilty of stealing more than $40 million in the Feeding Our Future trial. A total of seventy people are charged, although founder Aimee Bock maintains her innocence.
One of the jurors was dismissed during deliberations after reporting that she had a $120,000 bribe with the promise of more if she voted to acquit the suspects in the case. Wednesday, federal agents raids a series of Twin Cities homes looking for whoever tried to bribe her.
Note: The above video first aired on June 11, 2024.
