Legislative auditor finds major gaps in DHS behavioral‑health grants
Minnesota’s Legislative Auditor released a report finding the Department of Human Services’ Behavioral Health division failed to properly oversee tens of millions of dollars in drug‑treatment and mental‑health grants between July 2022 and December 2024, with 63 of 71 grants showing compliance problems and at least one $672,647 payment unsupported by invoices or service records. The audit details lax monitoring, steep mid‑stream grant increases—including one boost from $600,000 to $5.6 million—and a grant manager who soon left DHS to consult for the same grantee, prompting DHS to concede the findings, create a Central Grants Office, and promise tighter controls on providers that include many serving Minneapolis–St. Paul.
📌 Key Facts
- The Office of the Legislative Auditor examined 71 DHS Behavioral Health grants from July 2022 through December 2024 and found compliance problems in 63 of them.
- One provider received a single $672,647 monthly payment that auditors say could not be substantiated with invoices, participant records or other documentation; another grant was amended from $600,000 to $5.6 million without adequate justification.
- A DHS grant manager who approved the large payment left the agency days later to work as a consultant for that same provider, raising conflict‑of‑interest concerns.
- DHS’s Behavioral Health division acknowledged the failures and says it is standing up a new Central Grants Office, revising monitoring procedures and retraining staff to ensure grants are used for stated purposes and properly documented.
- The problematic grants fund substance‑use and mental‑health services that operate heavily in the Twin Cities, adding to public concern after prior fraud scandals in Feeding Our Future, Housing Stabilization Services, Integrated Community Supports and Evergreen Recovery.
📊 Relevant Data
The Somali population in Minnesota was approximately 107,000 in 2024, representing about 2% of the state's total population.
By the numbers: Minnesota's Somali population, according to Census data — KTTC
In the Feeding Our Future fraud case in Minnesota, most of the accused were immigrants from Somalia or had ties to the Somali community.
How Fraud Swamped Minnesota's Social Services System on Tim Walz's Watch — The New York Times
Black and Hispanic communities in Minnesota experience significant underdiagnosis of major depression compared to White communities.
Recent Analysis Shows Racial Disparities in Depression Treatment — MN Community Measurement
Low-income Black participants in Minnesota had the highest rates of poor or fair health (30.9% in 2019 and 28.4% in 2022), with persistent racial gaps.
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