Audit finds widespread oversight failures in Minnesota substance‑abuse grants
A new report from Minnesota’s Office of the Legislative Auditor finds the DHS Behavioral Health Administration failed to adequately oversee millions in substance‑abuse grants between July 2022 and December 2024, with systemic compliance problems in 63 of 71 audited grants and documentation issues in 11 of 18 tested payments. Auditors highlight a $672,647 one‑month payment a grantee could not support with invoices or participant records, steep mid‑stream grant increases (including one from $600,000 to $5.6 million), and a grant manager who approved the large payment, then left DHS days later to consult for that same provider. In response, BHA says it is restructuring oversight, creating a Central Grants Office and tightening monitoring of contracts and grants, changes that will affect Twin Cities treatment providers and clients who rely on these services.
📌 Key Facts
- OLA audited DHS Behavioral Health Administration grants from July 1, 2022 through Dec. 31, 2024 and found systemic issues in 63 of 71 grants awarded to 56 recipients (an 89% noncompliance rate).
- Auditors found problems in 11 of 18 tested payments, including insufficient documentation, unincurred costs, expenses outside the reimbursement period, or inaccurately reported costs.
- One grantee could not support a $672,647.78 payment for a single month of work, and the DHS grant manager who approved it left the agency days later and later consulted for that grantee; monitoring visits were not documented until October 2024.
- Eighteen providers saw their grant allocations increase by more than 100% during the period, including one that grew from $600,000 to $5.6 million (an 830% increase).
- BHA says it has begun corrective actions, including forming a Central Grants Office and restructuring leadership to strengthen contract and grant oversight.
📊 Relevant Data
In Minnesota, the drug overdose death rate per 100,000 population in 2022 was 242.0 among American Indian/Alaska Native individuals, compared to 6.5 among Asian individuals, 37.2 times higher.
State Summaries Minnesota | 2024 Annual Report | AHR — America's Health Rankings
African American Minnesotans are two times more likely to die from drug overdoses than White Minnesotans, based on recent data.
Differences in Rates of Drug Overdose Deaths by Race — Minnesota Department of Health
The percentage of people aged 12 or older in 2022 who misused opioids in the past year was higher among Multiracial (4.5%) and Black (4.1%) individuals compared to other groups.
Highlights by Race/Ethnicity for the 2022 National Survey on Drug Use and Health — SAMHSA
Between 2019 and 2020, overdose death rates increased by 44% among non-Hispanic Black persons in Minnesota.
Substance use disorder - Hennepin County — Hennepin County
In Minnesota, Black and Latina females have lower rates of substance use disorder treatment engagement compared to other intersecting sex, race, and ethnicity groups.
Sex, Race, and Ethnicity as Intersectional Predictors of Outpatient Substance Use Disorder Specialty Treatment Outcomes — PMC (PubMed Central)
African American Child Wellness Institute, Inc. received $7.3 million in BHA grants, serving communities with higher substance abuse needs.
Audit finds widespread oversight failures in Minnesota substance-abuse grants — FOX 9
Comunidades Latinas Unidas En Servicio (CLUES) received $7 million in BHA grants, targeting Latino communities in Minnesota.
Audit finds widespread oversight failures in Minnesota substance-abuse grants — FOX 9
📰 Source Timeline (1)
Follow how coverage of this story developed over time