ST. PAUL, Minn. (AP) -

A legislative auditor's report faults the Minnesota Department of Health for not closely monitoring a nonprofit's spending of public grant money.

The case involves the Sierra Young Family Institute. The health department paid the St. Paul nonprofit $328,000 in state and federal funds over two years to reduce unplanned pregnancies among young African-American girls and women in Minnesota.

Health department staff asked the legislative auditor to investigate, after noticing inconsistences in the group's reporting this summer.

Minnesota Public Radio News says the report issued Thursday found that the group's executive director had used grant money to pay family members more than $100,000.

In response, the health department says it will continue to make improvements in its grants oversight procedures.A phone number for the nonprofit could not be found.