Счетная палата выявила риски конфликта интересов в отношениях между департаментом здравоохранения Мичигана и некоммерческой организацией

LANSING — A state audit report released Sept. 4 raised concerns about potential conflicts of interest in the relationship between the Michigan Department of Health and Human Services and a nonprofit the agency frequently pays for research and other services. The health department created the nonprofit Michigan Public Health Institute in 1990. Over a two-year period, from Oct. 1, 2023, through Sept. 30, 2025, the department reached a series of agreements with the institute and awarded it grants and contracts, totaling $435 million, according to the state's Office of Auditor General. The office's review found improper documentation for some project costs involving the institute, and that status reports for the institute's work were being approved by staff affiliated with the institute or by health department staff who previously worked for the institute. Advertisement Advertisement Advertisement Advertisement "MPHI affiliate staff and/or MDHHS staff previously employed by MPHI approved almost half of all FSR (financial status reports) for payment to MPHI totaling $199 million," the auditor general's office found. The office said the arrangements set up "potential risk of conflicts of interest" by delegating oversight of institute projects to staff affiliated with the institute. In a response to the audit, the health department said its program managers "actively monitor" the institute's activities and "ensure proper oversight." "No improper payments were identified during the audit," the health department wrote. Advertisement Advertisement However, the auditor general's office noted that without additional documentation, the auditors couldn't "substantiate the appropriateness of the approved payments to MPHI." "Significant improvement" was needed in the health department's monitoring of agreements with the institute, the nonpartisan auditors wrote. The auditors also said that institute-employed staff approved reports for payments while "simultaneously working on the agreement they were approving." For years, the state health department has contracted with the institute for an array of services. The Okemos-based institute's budget ballooned during the COVID-19 pandemic, according to a 2021 investigation by The Detroit News. The two entities have been closely intertwined, as millions of dollars flowed between them. The institute has hired hundreds of contract employees to work within the state's Department of Health and Human Services, and the institute's employees can drive state-owned vehicles, The News reported in 2021. Advertisement Advertisement For 2024, Elizabeth Hertel, then-director of the government health department, was also listed on a tax filing as the president of the nonprofit institute. In 2024, the institute reported $202 million in revenue, more than three times the $67 million in revenue it reported in 2014. Gov. Gretchen Whitmer took office in January 2019. The institute's recent projects included "strategic support" for the health department, nursing home infection control, COVID-19 immunization support, mental health emergency preparedness and community violence intervention, according to the auditors' report. For years, Michigan House Republicans have scrutinized the relationship between the health department and the nonprofit organization. House Appropriations Chairwoman Ann Bollin, R-Brighton, said in a statement on Sept. 4 that the new audit raised serious concerns. Advertisement Advertisement "Oversight procedures designed to protect taxpayers are not being followed," Bollin said. "This is very concerning because every dollar should be supported by proper documentation, appropriate review and clear accountability." [email protected] Want to comment on this story? Become a subscriber today. Click here. This article originally appeared on The Detroit News: Michigan health department's work with nonprofit questioned by audit