Firefighters grant program audit shows mismanagement of funds, compliance issues

(FOX 9) - A program established to provide Minnesota firefighters with access to education and preventative care to help handle emotional trauma and cancer has not complied with state requirements or provided meaningful oversight of its funds, according to a recent audit.

Created in 2016, the Hometown Heroes Assistance Program currently dedicates $4 million per year through the Minnesota Firefighter Initiative (MnFIRE) as part of "the most comprehensive firefighter well-being legislation in the nation" passed in 2021 by the Minnesota Legislature. Prior to 2021, the program received $400,000 annually in state Department of Public Safety (DPS) funding.

But a report from the Office of the Legislative Auditor (OLA) following a tip it received in late 2022 showed that DPS has not adequately managed the Hometown Heroes grant, and that MnFIRE has not complied with financial oversight requirements.

The 70-page report also found that the Fire Service Advisory Committee, which recommends allocations from a special revenue account, has not followed state grant requirements, and DPS has not implemented any meaningful oversight of the funds distributed.

In its review, the OLA identified DPS payments of unallowable grant expenses, saying that during the first year of the Hometown Heroes grant, DPS’s Office of Justice Programs (OJP) made advance payments – rather than reimbursements – to grantees, in violation of its own policies and state grant requirements.

During at least the first ten months of the grant – from 2021 to 2022 – the grant was administered by OJP, with one person designated as the "state’s authorized representative" and another person as the "grant manager," but according to agreements reviewed, it was never clearly identified who was responsible for reviewing MnFIRE’s payment requests. As a result, individual grant payments were approved by MnFIRE after the date of the transfer.

Throughout the audit process, the grant manager said he received payment requests in which grant expenses were shown by budget category, however, acknowledged he did not ask for, or receive, supporting documentation such as receipts or canceled checks. Other DPS staff who reviewed the payment documentation from the Hometown Heroes grant said there was no detailed supporting documentation for the payment requests.

The report makes several recommendations to DPS that include conducting a full audit of MnFIRE’s requests for payment for expenses it charged to the Hometown Heroes grant. 

It also suggests that DPS ensure grant payments from MnFIRE are made as reimbursements, rather than advance payments, unless it has approved a written justification.