Gov. Tim Walz's office is facing criticism after a performance audit released Tuesday shows a dozen findings of mismanagement.

The report, which accounts for the period between July 1, 2022, and Dec. 31, 2024, revealed a dozen instances of alleged mismanagement in the office of Walz and Lt. Gov. Peggy Flanagan, including not correctly managing receipts, not accurately overseeing employee timesheet completion and approval, and making several late, and sometimes inaccurate, payments to vendors.

"The Office of the Governor and Lieutenant Governor generally did not comply with the criteria we tested," the audit report said.

The governor's office said it has already resolved 11 of 12 of the report's findings and implemented its recommendations.

A statement from Walz's office said, "We're grateful for the OLA's thorough review, which identified some issues the office had already resolved and recommended a number of process improvements. Nearly all of the recommended changes have now been made – nearly half of which were resolved before the audit began."

Minnesota Republicans were quick to jump on the findings Tuesday.

"When the governor's own office can't follow basic financial controls — overpaying employees, losing state property, and stiffing vendors for months — it's no wonder massive fraud is exploding across state government,"  Senate Republican Leader Mark Johnson of East Grand Forks said in a statement. "Sloppy accountability at the top breeds waste and abuse everywhere else. It's tempting to dismiss the small dollar amounts, but if Gov. Walz can't run his own office with integrity, he clearly can't hold agencies accountable for the billions of dollars they manage."

House Speaker Lisa Demuth recently announced her intention to run against Walz.

"After years of allowing fraud to run rampant in state agencies, we're now seeing that the lack of internal controls and accountability measures extends even to the Governor's office," Demuth, R - Cold Spring, said in a statement. "Here in Minnesota, accountability starts at the top. It's time for the governor to take a hard look at the financial practices within his own office and take responsibility for cleaning up the noncompliance both in his office and across all his agencies."