New Minnesota audit reveals massive fraud risk tied to post-George Floyd activism

As Minnesota’s massive fraud problems continue to gain nationwide attention, an audit is now sounding the alarm about potential fraud in a new area in the state related to contracts doled out by the city of Minneapolis in response to the death of George Floyd.More than 100 contracts were handed out to community groups as alternatives to policing in 2020 and the lax oversight of those contracts, according to a Minnesota Star Tribune report, was found by an audit to be susceptible to fraud and favoritism.The new Neighborhood Safety Contract Management Audit Report, which reviews spending from 2020-2025, shows the city is “not providing sufficient contract oversight or managing contracts effectively” in order to properly manage the more than $36 million that has been spent since 2023 on five major violence-prevention programs.The report warns that Minneapolis’ weak contract controls created a heightened risk of fraud and improper payments.Auditors found contractors often submitted invoices with limited supporting documentation, while the city sometimes continued making payments despite missing records or unresolved concerns.

The department is also said to have lacked a standardized process for conducting and documenting site visits to verify that contracted services were actually being performed.Additionally, auditors found the city still needs to improve invoice reviews, preserve contract records, document contractor communications and establish clearer procedures for escalating concerns.“Based on my past reporting on this and other city grant programs, any diligent audit of any city-administered grant programs would produce similar results,” Center of the American Experiment policy fellow Bill Glahn told Fox News Digital, pointing to his 2023 reporting on the matter.Glahn’s reporting raised questions about whether Minneapolis’ violence-interrupter program was producing measurable results.In a 2023 analysis, Glahn noted that the city had committed up...