Topic: Grant Fraud

An audit by the Minnesota Office of the Legislative Auditor revealed significant financial mismanagement within the Department of Human Services (DHS) Behavioral Health Administration. Auditor Judy Randall reported that managers backdated and created fraudulent documents to cover their tracks regarding hundreds of millions in grants issued without bidding. One specific instance involved a $672,000 payment to a grantee whose manager joined the private company days after leaving state employment.