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flag A 2026 audit found major flaws in Minnesota’s $425M behavioral health grant program, including fraud, poor oversight, and conflicts of interest.

flag A 2026 audit by Minnesota’s Office of the Legislative Auditor found serious flaws in the state’s Behavioral Health Administration grant program, which distributed over $425 million from 2022 to 2024. flag The report revealed widespread lack of oversight, missing or late progress reports, unverified site visits, and evidence of backdated or fabricated documents. flag A former grant manager approved nearly $673,000 in payments before leaving to join a recipient organization, raising conflict-of-interest concerns. flag Nearly $300,000 was paid for unsupported claims, and about 73% of staff said they lacked proper training. flag Temporary DHS Commissioner Shireen Gandhi acknowledged the findings and pledged reforms. flag The audit has intensified scrutiny over state social service programs and accountability.

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