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.
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đ 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. ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota)) ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota)) ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota)) ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota)) ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota)) ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota)) ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota)) ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota)) ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota)) ([America's Health Rankings](https://www.americashealthrankings.org/publications/reports/2024-annual-report/state-summaries-minnesota))
State Summaries Minnesota | 2024 Annual Report | AHR â America's Health Rankings
African American Minnesotans are two times more likely to die from drug overdoses than White Minnesotans, based on recent data. ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html)) ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html)) ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html)) ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html)) ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html)) ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html)) ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html)) ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html)) ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html)) ([Minnesota Department of Health](https://www.health.state.mn.us/communities/overdose/data/racedisparity.html))
Differences in Rates of Drug Overdose Deaths by Race â 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. ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf)) ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf)) ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf)) ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf)) ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf)) ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf)) ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf)) ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf)) ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf)) ([SAMHSA](https://www.samhsa.gov/data/sites/default/files/reports/rpt42731/2022-nsduh-race-eth-highlights.pdf))
Highlights by Race/Ethnicity for the 2022 National Survey on Drug Use and Health â SAMHSA
Between 2019 and 2020, overdose death rates increased by 44% among non-Hispanic Black persons in Minnesota. ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf)) ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf)) ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf)) ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf)) ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf)) ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf)) ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf)) ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf)) ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf)) ([Hennepin County](https://www.hennepin.us/-/media/hennepinus/your-government/open-government/igr/substance-use-disorder.pdf))
Substance use disorder - Hennepin County â 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. ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/)) ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/)) ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/)) ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/)) ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/)) ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/)) ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/)) ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/)) ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/)) ([PMC (PubMed Central)](https://pmc.ncbi.nlm.nih.gov/articles/PMC12520011/))
Sex, Race, and Ethnicity as Intersectional Predictors of Outpatient Substance Use Disorder Specialty Treatment Outcomes â PMC (PubMed Central)
African American Child Wellness Institute, Inc. received $7.3 million in BHA grants, serving communities with higher substance abuse needs. ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants))
Audit finds widespread oversight failures in Minnesota substance-abuse grants â FOX 9
Comunidades Latinas Unidas En Servicio (CLUES) received $7 million in BHA grants, targeting Latino communities in Minnesota. ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants)) ([FOX 9](https://www.fox9.com/news/audit-finds-widespread-oversight-failures-minnesota-substance-abuse-grants))
Audit finds widespread oversight failures in Minnesota substance-abuse grants â FOX 9
đ 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.
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