Auditor Finds Record Fabrication and Oversight Failures Inside Minnesota DHS

A new report from Minnesota’s state auditor is igniting controversy after concluding that the Minnesota Department of Human Services failed to properly verify grant recipients and, in some cases, fabricated or backdated records during internal reviews. The audit details millions of dollars approved without adequate checks, including a grant of $672,000 for a single month with no clear documentation of services provided.

Most alarming, auditors wrote that managers created new documents after the fact to cover gaps, and highlighted a case where a grant manager left DHS days after approving payments and then became a paid consultant to the same grantee. The findings are fueling calls for accountability and renewed scrutiny of Gov. Tim Walz’s administration, as lawmakers assess potential legal and ethical consequences stemming from the report.