DEED outlines pre‑award risk assessments, monitoring and recoupment tools for state grants

The House Fraud Prevention and Agency Oversight Committee on an unspecified date heard from Department of Employment and Economic Development (DEED) Commissioner Matt Verlick about how the agency reviews, approves and monitors grant recipients — including legislatively named grantees — to guard taxpayer dollars and verify program delivery.

Verlick told the committee that DEED performs pre‑award risk assessments and applies the same oversight controls to competitive grants and direct appropriations “as part of the process of getting to a contract.” He said the agency seeks to “strike the appropriate balance” between efficient distribution of funds and “stringent financial oversight to protect taxpayer funds from fraud and mismanagement.”

Why it matters: DEED manages hundreds of grant programs and large appropriations that steer public dollars to nonprofit organizations and businesses. Committee members pressed the agency on whether current checks — audited financials, IRS determination letters, state registrations and site visits — are sufficient to prevent misuse, to detect conflicts of interest and to ensure grantees deliver measurable outcomes.

What DEED told the committee

Program scale and types: Verlick said DEED administers dozens of programs and 30 competitive grant programs totaling about $163,000,000 for fiscal 2023–24, plus 136 direct appropriations valued at about $268,000,000 for the same period. He added the agency also oversees other economic programs such as broadband infrastructure. Members noted the legislature also…