The Minnesota Legislative Auditor is out with its autism center fraud report, showing flaws in how DHS handled kickback claims.
The 28-page report shows Minnesota's Department of Human Services did in fact have legal authority to address allegations of kickbacks in its early intensive developmental and behavioral intervention program, which provides help to children with autism.
DHS officials claim they didn't have authority to investigate kickbacks and in fact closed three complaints of kickback allegations without.
According to the Office of the Legislative auditor, the report also points out the explosion in the program's growth, with nearly 1,400 recipients in 2020 to over 5,600 in 2024, with the total cost of the benefit going from $38 million to nearly $325 million.
State Senator Jordan Rasmusson, the Republican lead for Human Services, issued the following statement:
“The Department of Human Services knew about potential kickbacks in autism services and chose to ignore this theft from taxpayers. Despite having legal authority to stop kickbacks, DHS knowingly allowed this service to be defrauded. This OLA report provides another example of Minnesota Democrats failing to protect taxpayers and the Minnesotans who rely on these services.”
Minnesota Governor Tim Walz also addressed the report, saying there has been a historical disagreement between agency lawyers and auditors over the department’s legal authority. He says they welcome this report.
"We welcome any of the help, and the OLA is doing that, of highlighting" Walz said Tuesday. "In that program, of course, this has been an ongoing problem."
Department of Human Services Commissioner Shireen Gandhi says that a roadmap for stronger program integrity is now in place, but admitted that past investigations were stalled by legal disagreements. She says that the current budget proposal from the governor contains explicit authority necessary to immediately crack down on kickbacks.
"We agree, at this point in time, DHS agrees with the OLA," Gandhi adds. "We are pursuing legislation, and if that doesn't happen we will do rulemaking. But legislation is the fastest path."
Gandhi says she is preparing to defend these reforms before a divided legislature.
You can read the entire report here:
2026 Minnesota Legislative Auditor Autism Center Fraud Report by Lindsey
Democrats propose another fraud prevention package
That comes the same day as another comprehensive fraud prevention package was unveiled Tuesday at the state capitol in St. Paul, this time from Senate Democrats.
They are behind a raft of bills now making their way through the legislative process.
DFL Senator Heather Gustafson talked about her proposal to create an Office of Inspector General that focuses on investigations, safeguards, and early detection.
"Part of why this bill has gained such broad support is that the Office of Inspector General is designed to be independent of politics and political influence," Sen. Gustafson said. "It doesn't matter who's in power, there will always be someone with the authority and independence to protect taxpayer dollars."
Senate Democratic Leader Erin Murphy says Minnesotans are rightfully angry about fraud that's already been committed against the state. She says the status quo isn't protecting the state against these criminal actions.
DFL Senator Erin Maye Quade has a proposal to update and modernize equipment used in state agencies, which she says makes them more vulnerable.
"Counties and their employees have been getting by on technology patchworks and clever workarounds that are time consuming, costly, and prone to error," says Maye Quade. "People trying to exploit the weaknesses and loopholes are increasingly sophisticated for our 1994 systems."
Murphy pointed out her caucus has a history of passing fraud prevention and accountability measures since gaining the majority, saying they are committed to vigilance and oversight.
