An audit released this week warns that the City of Minneapolis has not provided adequate oversight of the contracts awarded to community groups as alternatives to traditional policing. The review, covering the period from 2020 to 2025, examined more than 100 contracts that together represent over $36 million in spending on five major violence‑prevention initiatives.

Audit findings highlight procedural gaps

The Neighborhood Safety Contract Management Audit Report notes that the city’s contract‑management process lacks a standardized system for site visits, invoice verification, and documentation of contractor communications. Auditors observed that many invoices were submitted with limited supporting documentation, yet payments continued despite missing records or unresolved concerns.

Specific weaknesses identified include:

• Inconsistent invoice reviews and insufficient preservation of contract records.
• Absence of a clear, documented procedure for escalating concerns about contractors.
• Failure to conduct regular, on‑site inspections to confirm that services were actually being performed.

While the audit did not uncover a single proven case of fraud, it warned that the current controls create a heightened risk of improper payments and potential misuse of funds.

Critics question program results

Policy fellow Bill Glahn of the Center of the American Experiment, who has reported on the city’s grant programs since 2023, said the audit’s findings are consistent with his earlier investigations. Glahn noted that the city has committed up to $7.5 million to the violence‑interrupter program for fiscal year 2022‑23, with an additional $13 million slated for the 2024‑28 budget, yet substantive evidence of reduced violent crime has not been published.

Glahn also highlighted concerns about the financial capacity of several grant recipients. One organization, We Push for Peace, was cited for having staff members involved in violent incidents outside a St. Paul grocery store in 2021, including a video‑recorded assault on a homeless individual.

“The city seems primarily interested in shoveling money out the door to ‘address’ urgent problems,” Glahn said. “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.”

City response and next steps

In response, a Minneapolis city spokesperson thanked the auditor for the recommendations and said the department has already taken steps to improve processes. “We appreciate the support of the auditor to make thoughtful, strategic recommendations to improve our department,” the spokesperson said. “Our work is meaningful, and every day we’re working to make our City safer through innovative safety services, like violence prevention and human trafficking prevention, among others. We’ve taken several steps since the audit report to improve our processes and contract oversight.”

The city’s statements underscore a commitment to tighter controls, but critics argue that more substantive reforms—such as rigorous on‑site inspections and stricter financial vetting—are needed to protect taxpayer dollars and ensure public‑safety programs deliver real results.

Broader context of Minnesota fraud concerns

The Minneapolis audit adds to a series of recent fraud‑related investigations in Minnesota, including the state’s anti‑ICE aid fund and the Feeding Our Future program. State Senator Mark Koran, a Republican, has called for more aggressive on‑site reviews, noting that many alleged service sites do not exist.

“If they would have just gone to the facilities, you know, you would hear of the thousands of people being served out of an apartment twice a day,” Koran said. “One of the properties didn’t even exist.”

As Minnesota grapples with these oversight challenges, the Minneapolis audit serves as a reminder that robust contract management is essential to safeguarding public resources and delivering effective community safety services.

Original reporting: Fox News (HLL/CB) — read the source article.