Minneapolis Audit Reveals Fraud Risk in Violence Prevention Contracts
A new audit found lax oversight and insufficient controls in city contracts for post-George Floyd activism, raising concerns about potential fraud.
An audit of violence prevention contracts in Minneapolis has revealed significant weaknesses in oversight and management, leading to a heightened risk of fraud and improper payments. The audit, which reviewed spending on programs initiated in response to the death of George Floyd, found that the city is not effectively managing the more than $36 million allocated to five major violence-prevention initiatives since 2023.
The Neighborhood Safety Contract Management Audit Report indicates that the city's contract controls are insufficient to properly manage the substantial funds. Auditors noted that contractors frequently submitted invoices with minimal supporting documentation, and payments were sometimes issued despite missing records or unresolved issues. Furthermore, the department reportedly lacked a standardized process for verifying that contracted services were being delivered through site visits.
These findings echo concerns raised by critics about the effectiveness and accountability of such programs. Bill Glahn, a policy fellow at the Center of the American Experiment, pointed to his previous reporting which questioned the measurable results of Minneapolis' violence-interrupter program. Glahn noted that significant public funds were allocated to initiatives without clear evidence of reducing violent crime, and raised questions about the financial capacity and backgrounds of some participating organizations.
Similar issues have surfaced in other state programs. Minnesota has faced criticism for inadequate oversight in initiatives like the Feeding Our Future program and Medicaid programs, where a lack of site visits was cited as a contributing factor to fraud. State Senator Mark Koran previously stated that a legislative audit revealed property owners indicating that businesses claimed to operate from their facilities did not exist there.
A spokesperson for the City of Minneapolis stated that the city appreciates the auditor's recommendations and is taking steps to improve processes and contract oversight. The spokesperson emphasized the department's meaningful work in making the city safer through innovative safety services and its commitment to improving lives and its methods of doing so.