Scathing audit reveals more fraud concerns inside top Minnesota agency with fabricated documents, 'misconduct'

A major state audit in Minnesota conducted by the nonpartisan Office of the Legislative Auditor found widespread failures and internal control problems in the Department of Human Services' Behavioral Health Administration (BHA) grant program, reaffirming concerns about massive fraud issues.

The report, released on Monday, 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.

The audit found missing progress reports and discovered BHA could not show it had completed all required monitoring visits and had no documentation at all for some of them.