Maine Democratic congressional candidate and state auditor Matt Dunlap is facing renewed questions about Medicaid oversight after an audit released earlier this year identified a gap in the state’s process for monitoring potential misuse of MaineCare funds, as reported by Fox News.
Dunlap is seeking to represent Maine’s 2nd Congressional District and will face Republican nominee and former Gov. Paul LePage in the general election on Nov. 3.
The audit, released by Dunlap’s office in 2026, found that the Program Integrity Unit, or PIU, could not provide documentation explaining how it selected projects and post-payment reviews used to monitor Medicaid services provided under the state plan.
“[The Program Integrity Unit] could not provide documentation of the methodology used to identify projects and post-payment reviews performed in relation to surveillance of all Medicaid services provided under the State plan,” the report states.
The PIU is responsible for selecting cases for review to help determine whether state programs are complying with federal requirements. The office said the cases were selected using “data analytics.”
However, the audit identified weaknesses in that process. It said the PIU could not document why particular cases had been selected and did not account for potential misuse involving either Medicaid beneficiaries or providers.
The report concluded that the PIU “does not document consideration of misutilization practices of beneficiaries or providers … [and] may not provide adequate monitoring of all Medicaid services, resulting in potential noncompliance with Federal regulations.”
The finding was listed as having no prior-year finding, meaning the issue had not previously been identified in the audits cited by the office.
The audit has drawn additional attention because it follows federal findings involving millions of dollars in improper Medicaid payments in Maine.
In January, the U.S. Department of Health and Human Services Office of Inspector General reported that Maine had made at least $45.6 million in improper Medicaid payments for autism services.
The federal findings followed concerns raised in December by Christopher Bernardini, a former employee of Gateway Community Services.
Bernardini alleged that the company had submitted false records concerning client visits and billed Maine’s Medicaid program for services he said had not been provided.
The allegations and federal findings have placed Maine’s Medicaid oversight system under increased scrutiny.
Dunlap’s campaign has pushed back against criticism of his record, arguing that the audit identified a specific weakness while noting that the auditor has previously identified other problems involving state spending.
“As Auditor, Matt Dunlap has flagged many issues that date back to the LePage administration. He has been praised by local press and Republican leaders alike for his work to recommend ways to safeguard taxpayer dollars. Paul LePage should answer why his team didn’t implement the recommendations of his own Auditors from when he was governor,” Harry Burke, a spokesperson for the Dunlap campaign, said.
The campaign also argued that the state auditor does not have direct authority to implement changes identified through audits.
Those decisions generally fall to the departments responsible for administering state programs, while auditors can recommend corrective measures.
“The auditor’s job is to be a fire alarm: identify the problems so that state agencies can act. For example, last year, his recommendations led to the arrest and prosecution of a procurement fraudster, saving taxpayer dollars,” Burke added.
Dunlap’s history as auditor has nevertheless become a campaign issue. He first assumed the position in 2021 despite initially lacking the credentials required to become a certified auditor.
He resigned after failing the necessary examination twice before returning to the position in November 2022 after passing the required exams.
Vice President JD Vance addressed Dunlap’s record during a campaign event in Maine on Monday, where he also discussed concerns about fraud involving taxpayer-funded programs.
“How did Maine become one of the main capitals of defrauding the American taxpayer?’” Vance asked.
Vance then criticized Dunlap’s qualifications and his handling of taxpayer funds.
“One of the answers is somehow you guys hired an auditor who is not actually an auditor and failed the auditor exam. Well, call it old-fashioned common sense, but if you want somebody managing your money, maybe they ought to actually meet the constitutional requirements to do the job,” Vance said.
Vance also directly called on voters to reject Dunlap’s congressional bid.
“And for Matt Dunlap, if you’ve got a guy who cannot protect your tax dollars from fraudsters, who has turned your state into one of the fraud capitals of the United States of America, maybe you should be saying to Matt Dunlap, ‘You’re fired, not promoted to the United States Congress,’” Vance said.
Earlier audits from before Dunlap’s tenure also documented concerns within Maine’s auditor’s office about the number of fraud investigations being handled relative to available resources.
Reports covering the years before Dunlap took over noted that the state had opened a large number of cases involving potential fraud, abuse or questionable practices.
“Cases opened because of potential fraud, abuse, or questionable practices need improved supervisory review,” several reports stated.
Audits dating back to 2016 also found that the office was taking on more cases than its staffing and resources could support, contributing to insufficient monitoring of individual investigations.
Since Dunlap returned to the auditor’s position in 2022, that particular concern has not resurfaced in the same form, according to the reporting cited.
Dunlap secured the Democratic nomination earlier this year. He will now face LePage, who served as Maine governor from 2011 through 2019, in the Nov. 3 general election.
The debate over MaineCare oversight, the state’s handling of fraud allegations, and Dunlap’s record as auditor is expected to remain an issue as the congressional campaign moves toward the general election.
