Recent scrutiny of federal programs in Minnesota has drawn national attention to serious oversight failures at the state level. Those problems are not isolated. Audits in Georgia and other states reveal similar warning signs that raise broader concerns about accountability, internal controls, and the use of federal funds.

Op-ed by Sheila Weinberg, "The Chicago Tribune recently exposed disturbing oversight failures in Minnesota’s federally funded programs, problems that have led to fraud investigations and federal payment freezes. But this is not unique to Minnesota. Illinois’s most recent Single Audit reveals similar systemic breakdowns in federal program oversight, showing that federal taxpayers’ money is at risk far beyond one state."

Like Minnesota, California faces serious concerns in child care oversight and other federally funded programs. The state’s 2024 Single Audit, issued in December 2025, reviews how California manages and reports on billions in federal funds. In that audit, 10 programs received qualified opinions, meaning independent auditors identified weaknesses in how the programs were run and whether federal rules were followed. These problems have led to federal payment freezes and ongoing investigations, illustrating the real-world consequences of monitoring failure.

Minnesota is now under intense scrutiny for major oversight breakdowns in federal programs, failures that a new Truth in Accounting analysis shows are far from isolated, with similar red flags already exposed in Illinois and raising serious nationwide concerns about accountability.

In the 2025 "Financial State of the States" report, Truth in Accounting (TIA) paints a stark picture of fiscal irresponsibility across the U.S., with unfunded pension liabilities emerging as one of the most pressing threats to long-term state solvency. These liabilities represent promised retirement benefits to public employees—such as teachers, firefighters, and state workers—that governments have committed to but failed to adequately fund. By shortchanging pension contributions today, states are effectively borrowing from the future, shifting massive costs onto tomorrow's taxpayers.

Dive into the hidden world of government finance and the rising influence of Artificial Intelligence in this thought-provoking webinar hosted by Truth in Accounting. This session unpacks how opaque financial reporting, emerging AI technologies, and real-world cases of mismanagement converge to impact taxpayers, public trust, and the future of democratic accountability.

The Chicago government derives its power from the consent of the governed, making it essential for officials to report their actions and results in a truthful and understandable manner. And because official government reports are often complex and misleading, Truth in Accounting (TIA) provides this transparent, citizen-friendly research and report just in time for the 2026 annual budget debate, which must be signed into law by December 31st, 2025. This is Truth in Accounting’s 11th annual Financial State of Chicago report. This report analyzes the fiscal health of our nation’s third-largest city based on its 2024 Annual Comprehensive Financial Reports (ACFRs).

In the world of finance, timeliness isn't just a courtesy—it's a cornerstone of trust, accountability, and informed decision-making. Yet, when it comes to state governments, this principle seems optional. Truth in Accounting's (TIA) sixteenth annual Financial State of the States report, released in September 2025, shines a harsh light on this issue. 

In August 2025, Illinois Governor JB Pritzker signed legislation boosting pensions for Chicago police and firefighters, a move projected to cost the city $11 billion over 30 years. Despite warnings from Chicago’s Chief Financial Officer about the “devastating” financial impact and a police pension fund that is currently funded below 20%, the state pressed forward. 

State pension plans, particularly those for public employees like teachers, firefighters, and government workers, are subject to various federal regulations, including IRS rules and other federal laws, to ensure compliance with tax, nondiscrimination, and retirement benefit standards. These rules apply because state pensions often receive tax advantages (e.g., tax-deferred contributions) and may opt out of Social Security; therefore, they must align with federal standards to maintain their tax-qualified status or avoid penalties. Below are detailed examples of how state pensions fall under IRS rules and other federal regulations, with a focus on key provisions and their implications.