A 60-page audit released by the Minneapolis City Auditor’s Office has identified significant oversight failures in the city’s Neighborhood Safety Department, which contracts with nonprofit groups to provide violence prevention services in high-crime areas. The audit, covering spending from 2020 to 2025, found that the department paid out more than $36 million to five major programs but lacked sufficient controls to prevent fraud, waste, and abuse.
The report, titled the Neighborhood Safety Contract Management Audit, concluded that the city’s weak contract management created a heightened risk of improper payments and favoritism. Auditors noted that contractors frequently submitted invoices with limited supporting documentation, while the city continued processing payments despite missing records or unresolved concerns. The department also failed to maintain standardized procedures for verifying that contracted services were actually delivered, including documenting site visits or establishing clear escalation processes for concerns.
Key findings from the audit include:
- Inadequate invoice reviews: Contractors often provided minimal evidence to justify payments.
- Lack of record preservation: The city did not consistently retain or organize contract-related documents.
- No standardized oversight: No uniform process existed for monitoring contractor performance or addressing deficiencies.
- Delayed responses to red flags: Concerns raised by auditors or staff were sometimes unresolved for extended periods.
The audit was conducted in response to the city’s expansion of community-based violence prevention programs following the 2020 killing of George Floyd and the subsequent protests. These programs were designed as alternatives to traditional policing, with the Neighborhood Safety Department overseeing contracts totaling $36 million since 2023 alone. The audit did not assess whether the programs were effective in reducing violence, focusing instead on financial and administrative risks.
City officials have not yet publicly detailed their response to the audit’s findings. The Neighborhood Safety Department, which oversees the contracts, has not responded to requests for comment. The audit was conducted by the Minneapolis City Auditor’s Office, an independent government body responsible for evaluating city programs.
The report recommends that the department improve contract oversight, including:
- Implementing standardized invoice review processes.
- Establishing clear documentation requirements for contractors.
- Creating formal procedures for site visits and performance verification.
- Developing escalation protocols for addressing contractor noncompliance.
The audit follows broader scrutiny of Minneapolis’ spending on social programs, particularly those established after the 2020 unrest. Critics have previously raised concerns about lack of transparency and accountability in similar city-funded initiatives. The audit does not allege specific instances of fraud but highlights systemic vulnerabilities that could enable misuse of public funds.