Minnesota DHS faces scrutiny over alleged autopilot payments to nonprofits amid fraud concerns

January 22, 2025 | 2025 Legislature MN, Minnesota


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Minnesota DHS faces scrutiny over alleged autopilot payments to nonprofits amid fraud concerns
Concerns over fraud in Minnesota's Department of Human Services (DHS) took center stage during a recent Senate Committee on Human Services meeting. Commissioner Jodi Harpstead expressed frustration over a lack of media coverage regarding the department's efforts to combat fraud, emphasizing the importance of transparency in protecting taxpayer dollars.

The meeting highlighted ongoing inquiries into fraud allegations, with Commissioner Harpstead revealing that DHS has reached out to federal partners for clarification on recent comments made in the press about fraud in Minnesota. However, she noted that they have yet to receive any guidance or information on potential issues to investigate.

Senator Steve Gruenhagen raised alarm over documented fraud cases, citing a total of $552,397 linked to various incidents from 2019 to 2025, including the controversial "Feeding Our Future" case. He referenced claims made by a colleague suggesting that the total fraud could be closer to $1 billion. Gruenhagen pressed for answers regarding the oversight of payments to nonprofits, questioning whether the DHS payment system operates on "autopilot" without adequate review.

In response, DHS Chief Financial Officer Dave Greenman assured the committee that there are safeguards in place. He explained that grant managers are responsible for reviewing payment requests to ensure compliance with contracts before any funds are disbursed. Greenman acknowledged that while mistakes can occur, the department is committed to correcting them.

Senator Gruenhagen continued to challenge the adequacy of financial controls, asking whether an "earned value management" system is utilized to analyze these activities. Greenman admitted unfamiliarity with the term but assured the committee that DHS employs various data analytics to address and manage fraud effectively.

The discussions underscored the ongoing scrutiny of DHS's financial practices and the need for robust oversight to safeguard public funds. As the search for a permanent inspector general continues, the committee's focus on fraud prevention remains a critical issue for Minnesota's taxpayers.

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Scribe from Workplace AI
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