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A state contractor that provides outpatient mental health and addiction treatment services misused and mishandled tens of thousands of dollars in federal grant funds, according to findings of a special investigation released this week by Iowa State Auditor Rob Sand.

The auditor’s report identified more than $180,000 in questioned or improper spending by Crossroads Behavioral Health Services, a nonprofit contracted by the Iowa Department of Health and Human Services to provide mental health and addiction services in southern Iowa.

The probe — requested by Iowa HHS in March 2024 after concerns that Crossroads had failed to reimburse a subcontractor and may have misused federal grant dollars — r

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