A recent audit in Minneapolis highlights significant oversight issues regarding $36 million in violence prevention contracts established in response to George Floyd’s death, raising concerns about potential fraud and mismanagement.
A new audit in Minneapolis has revealed alarming weaknesses in the oversight of $36 million allocated for violence prevention contracts linked to initiatives launched after George Floyd’s death in 2020. The findings underscore ongoing concerns about fraud and favoritism in the management of these funds.
According to a report by the Minnesota Star Tribune, the audit, titled the Neighborhood Safety Contract Management Audit Report, assessed spending from 2020 to 2025. It concluded that the city of Minneapolis has not provided adequate oversight or effective management of the contracts, which are intended to support five major violence-prevention programs.
The report warns that the city’s lax contract controls have created a heightened risk of fraud and improper payments. Auditors discovered that contractors frequently submitted invoices lacking sufficient supporting documentation. In some instances, the city continued to process payments despite missing records and unresolved issues. Furthermore, the department reportedly lacked a standardized approach for conducting and documenting site visits to ensure that contracted services were being delivered as promised.
Bill Glahn, a policy fellow at the Center of the American Experiment, expressed concerns about the audit’s findings, noting that any thorough examination of city-administered grant programs would likely yield similar results. Glahn previously reported on the effectiveness of Minneapolis’ violence-interrupter program, questioning whether it was achieving measurable outcomes. He highlighted that the city had committed up to $7.5 million to the initiative for the years 2022-2023, with an additional $13 million earmarked for 2024-2028, yet there was no substantial evidence demonstrating that the program was successfully reducing violent crime.
In his analysis, Glahn scrutinized the backgrounds and financial stability of the organizations involved in the program. He found that several of these groups had annual revenues or staffing levels that were disproportionately low compared to the size of the grants they received. One organization, We Push for Peace, was linked to violent incidents outside grocery stores in St. Paul in 2021, including an incident where a violence interrupter was filmed assaulting a homeless man.
“The city seems primarily interested in shoveling money out the door to ‘address’ urgent problems,” Glahn stated. “Little if any care is given to ensuring that the grant recipients are capable of or have a track record of doing the work, are actually doing the work contracted for, or whether that work is resulting in net benefit for city residents and taxpayers.”
The audit’s findings come amid broader scrutiny of Minnesota’s handling of public funds, particularly in light of previous fraud scandals involving programs like Feeding Our Future and Medicaid. Critics have pointed out that the state has not conducted enough on-site visits to verify the legitimacy of these programs.
In December, Minnesota Republican state Senator Mark Koran criticized the lack of oversight, stating, “If they would have just gone to the facilities… all they would have to do is show up and look at it.” He referenced a legislative auditor report indicating that 30 property owners had contacted the Department of Education, revealing that many of the businesses claiming to operate from their properties did not exist.
Glahn emphasized that even basic reviews of tax records and financial statements would have likely disqualified many of the vendors involved in these contracts. “We have not slowed down; there is no sense in which the fraud has been stopped in Minnesota,” he remarked.
While the audit did not identify specific instances of fraud, it highlighted the significant risks associated with Minneapolis’ weak oversight controls. Many social media users have expressed skepticism about the state’s ability to manage these funds effectively. Retired Navy intelligence officer Phillip C. Parrish commented on X, stating, “This isn’t a tracking glitch. It’s the same business model that looted child-nutrition money, Medicaid housing, autism therapy, and daycare: stand up a moral emergency, pour cash through politically connected nonprofits, skip site visits and receipts, then scream ‘livelihoods’ when anyone asks where the money went.”
In response to the audit, a spokesperson for the city of Minneapolis stated, “We appreciate the support of the auditor to make thoughtful, strategic recommendations to improve our department.” The spokesperson added that the Neighborhood Safety Department is committed to enhancing its processes and contract oversight, emphasizing the importance of their work in improving community safety.
As Minneapolis grapples with these findings, the implications for future funding and oversight of violence prevention programs remain uncertain. The audit serves as a critical reminder of the need for robust oversight mechanisms to ensure that public funds are used effectively and transparently, particularly in response to urgent community needs.
These concerns echo broader issues within state programs, as Minnesota continues to face scrutiny over its handling of public funds and the potential for fraud. The audit’s revelations may prompt further investigations and calls for reform in the management of taxpayer dollars.
According to Fox News Digital, the situation underscores the necessity for improved accountability and oversight in city-administered programs to protect the interests of residents and taxpayers.