DEPARTMENT: Employment and Economic Assistance
FILE TYPE: Consent Action
TITLE
title
Authorization To Accept Grant Funds From Minnesota Department Of Human Services For Fraud Prevention Investigations And Execute Grant Agreement
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PURPOSE/ACTION REQUESTED
Authorize acceptance of Minnesota Department of Human Services (DHS) grant funds for Fraud Prevention Investigations (FPI) and execution of the grant agreement.
SUMMARY
Dakota County Employment and Economic Assistance (E&EA) has historically partnered with DHS to administer a public assistance FPI program pursuant to Minn Stat. § 256.983, to facilitate fraud prevention, detection, and investigations. The FPI program assists public assistance program integrity, promotes repayment of fraudulent claims, and refers certain cases for criminal prosecution or for administrative disqualification of public programs. Public assistance programs include the Minnesota Family Investment Program, Diversionary Work Program, Supplemental Nutrition Assistance Program, Emergency Programs, Child Care, General Assistance, Minnesota Supplemental Aid, and Health Care programs.
An FPI grant agreement is required to be in place with DHS to administer the program and to obtain reimbursement for FPI program costs. The grant will continue to fund a 1.0 full- time equivalent Welfare Fraud Investigator in E&EA and training opportunities.
OUTCOMES
How Much? In State Fiscal Year (SFY) 2024 (July 2023 - June 2024) there were a total of 593 FPIs completed. Twenty of the 593 cases were referred to the county attorney to review for criminal prosecution. On average, there are 49 referrals sent over for an investigation per month.
How Well? The average time to complete an FPI investigation is 5 days, which is significantly lower than the 15-day program requirement. The cost benefit ratio (CBR) for the FPI program in SFY 2024 was $10.30, compared to the state CBR requirement of $3.00.
Is Anyone Better Off? The FPI program identified a total of $1,810,000 of public assistance overpayments and savings for the SFY of 2024.
RECOMMENDATION
recommendation
Staff recommends authorization to accept the DHS grants funds for FPI in the amount of $330,560 and execute the grant agreement for the period of July 1, 2025, through June 30, 2027.
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EXPLANATION OF FISCAL/FTE IMPACTS
The Fraud Prevention Investigation grant is included in the 2025 Employment and Economic Assistance Budget.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Dakota County Employment and Economic Assistance (E&EA) has partnered with the Minnesota Department of Human Services (DHS) for Fraud Prevention Investigations (FPI) services for many years; and
WHEREAS, FPI is a public assistance fraud program that conducts timely fraud prevention investigations of program applicants and participants; and
WHEREAS, the program preserves public funding, promotes repayment of fraudulent claims, and refers certain cases for criminal prosecution or for administrative disqualification of public assistance programs, including the Minnesota Family Investment Program, Diversionary Work Program, Supplemental Nutrition Assistance Program, Emergency Programs, Child Care, General Assistance, Minnesota Supplemental Aid, and Health Care programs; and
WHEREAS, this grant will continue to fund a 1.0 full-time equivalent Welfare Fraud Investigator in E&EA and bi-annual training opportunities; and
WHEREAS, staff recommends the County Board authorizes acceptance of the grant funds in the amount of $330,560 and execution of the grant agreement for the period of July 1, 2025 through June 30, 2027.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Community Services Director to accept the grant funds and execute a grant agreement in the amount of $330,560 for the period of July 1, 2025, through June 30, 2027, subject to approval by the County Attorney's Office as to form; and
BE IT FURTHER RESOLVED, That unless the grant program requirements change, the Community Services Director is hereby authorized to amend the grant to extend the grant term up to two years after initial expiration date, accept additional grant funds, and continue grant-funded full-time equivalents, consistent with County contracting policies, and inclusion of grant funds in future yearly Recommended and Approved Budgets, subject to approval by the County Attorney’s Office as to form.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: None.
BOARD GOALS
☒ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACTS
Department Head: Nadir Abdi
Author: Amy Shillings