Minnesota fraud case just got much worse as evidence comes pouring in

The hits just keep coming for Minnesota, with fraud concerns piling up and taxpayers demanding answers.

The Office of the Legislative Auditor, a nonpartisan entity, released a disturbing state audit that “found widespread failures and internal control problems in the Department of Human Services’ Behavioral Health Administration (BHA) grant program,” according to Fox News. This is terrible news for a state already wrestling with allegations of fraud in the cases of several Somali-run daycare centers.

On Monday, the office released the report, and it found that “between July 1, 2022, and Dec. 31, 2024, DHS dished out more than $425 million in grants to 830 organizations, the majority being nongovernmental, and did not show proper oversight in watching over those taxpayer funds, which in many cases were meant to help those with addiction and mental health issues.”

Screengrab: Office of the Legislative Auditor report

Additionally, the audit uncovered missing progress reports and documentation that appeared to be backdated and/or freshly created, meaning that it was completed during the audit in an attempt to establish compliance.

“The OLA report shows a complete breakdown in how DHS’s Behavioral Health Administration manages hundreds of millions in taxpayer-funded grants,” said Republican State Sen. Mark Koran. “BHA failed to verify that grantees were providing the services they were paid for, failed to put basic financial controls in place, and then created documentation after the fact to mislead auditors.

“Minnesotans deserve integrity from state agencies. Fabricating evidence after an audit begins is unacceptable. It obstructs the OLA’s work and prevents DHS from correcting its failures. The finding that a DHS manager approved a large grant and later became a paid consultant for that same grantee is a blatant conflict of interest. This kind of misconduct erodes public trust and undermines the effectiveness of grant programs,” the outraged lawmaker added.

“The audit makes clear that DHS leadership has failed at every level. Employees were not properly trained, oversight was ignored, and accountability was missing, from Governor Walz, to Temporary DHS Commissioner Gandhi, to BHA managers. DHS needs a full reset, starting with leadership, training, ethics, and oversight.”

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Also included in the audit was an employee survey, which saw a whopping 73% of workers say they hadn’t received the training necessary to manage the grants.

“Executive leadership has repetitively shown staff that they won’t take the staff’s concerns or questions seriously until something serious happens or it makes the news,” said one particularly honest employee.

Sierra Marlee

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