Oregon Health Authority mishandled federal mental health funds, audit finds

Federal auditors have found that the Oregon Health Authority may have misappropriated more than half a million dollars in federal mental health grants, according to a June 19 report from The Lund Report.

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The Oregon Health Authority has received $13 million over the last two years from the Substance Abuse and Mental Health Services Administration to support the state’s behavioral health and addiction services programs.

The auditors found that the health authority improperly designated more than $570,000 in federal funding to the expansion and remodeling of a residential youth facility in Eugene operated by the nonprofit Looking Glass Community Services.

However, funding cannot be used for major building improvements under the federal mental health grant program. The audit also found that Looking Glass used grant money to train staff to allow the facility to serve up to 20 youth, as opposed to the approved 12 patients.

Tim Heider, a spokesperson for the Oregon Health Authority, told The Lund Report that OHA was waiting for a final decision from SAMHSA on whether the funds were allowable, that it had provided all requested documentation, and that Looking Glass would pay back the state if necessary.

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