State auditors flag widespread problems, potential backdating in DHS behavioral health grants; agency vows fixes

The Legislative Audit Commission on Jan. 6 heard a performance audit that found widespread failures in the Department of Human Services—Behavioral Health Administration—(BHA) grant management, including instances where staff created or backdated records after auditors requested files, questioned tens of thousands of dollars in payments and identified pervasive monitoring and reconciliation lapses.

Legislative Auditor Judy Randall told the commission that auditors "identified a number of documents that the Behavioral Health Administration either backdated or created after our audit began," saying that multiple BHA staff appeared to be involved and that the issue "undermines the integrity of the audit." Randall said the activity ranged from delayed paperwork entry to documents that were entered and backdated by years.

Audit Director Valentina Stone summarized the audit scope and key findings: reviewers examined BHA grants from July 2022 through Dec. 2024, focused on grants to nongovernmental organizations, performed site visits and independent financial reconciliations, and surveyed BHA staff about training and culture. Stone said auditors tested procurement and monitoring practices and found significant exceptions across many areas.

Among the findings highlighted: auditors identified widespread misuse of…