Minnesota audit reveals financial mismanagement in Peggy Flanagan’s office

A 2025 audit of Minnesota Lieutenant Governor Peggy Flanagan’s office has revealed significant internal control failures, illegal spending, and widespread noncompliance. Deputy Legislative Auditor Lori Leysen detailed 12 separate findings, noting that four findings from a previous 2022 audit remained unresolved.

The report highlights several instances of fiscal mismanagement, including the routine overpayment of separated employees. When questioned about the failure to recover these funds, the office stated it was “not in the public interest” to pursue the money. Additionally, the audit found that staff members bypassed state purchasing card limits by splitting large transactions into multiple smaller payments, such as for furniture and flowers, to avoid the $5,000 single-transaction threshold.

Other issues identified in the audit include basic mathematical errors, missing documentation, and instances of double-paying state agencies. The findings have brought increased scrutiny to Flanagan’s record as she seeks a seat in the U.S. Senate.