Legislative Joint Auditing-State Agencies

The. The emotion adopted minutes with that objection all right what that will go to review reports mister boyton. Four reports they have findings and we also have one report without findings this listed on page one of the audit summary. So without objection we can follow that one report without objection will file the one report without findings okay the first report with findings of the is the auditor state june thirty two thousand twenty two report and this report contains two findings. The first finding the auditor states office incurred over fourteen thousand dollars in rs penalties initially the office incurred over fifty seven thousand dollars in penalties during physical year twenty two due to airs and dating the federal world holding form submitted to the r s for four papers. The first r s no suppenley was received by the eighty on december third two thousand twenty one. The pillies were disputed at that point in around forty three thousand were resolved and refunded leaving a total of fourteen thousand dollars. And the second finding on september twenty eighth two thousand twenty two the asu was notified of fraudulent and came unclaimed properly claimed made in pennsylvania that could involve an archaw claimant. Upon notification the active located claim for around thirteen hundred dollars made by this climate on july that two thousand twenty and added the claim to the fraud mitigation tables within the unclaimed property management system. Pennsylvania officials plan to refer this case to the US attorney's office and include the archaw claim mitchell that can lose advice for all the state thank you sir if we get a representatives of the other office to the table please introduce yourself in your title mister chair deputy auditor jason breedy chess like a key unclaimed property manager thank you very much what would like to do is just go through each finding looking at finding one if you want to give a brief explanation and action is taken to open up her questions the mood finding too. So sorry or offers m uses a non asus payroll system and that system generates these nine forty ones that we have to send in each quarter we had am some loss of staff and it transition period and during that period the manager was not aware that the dates that printed automatically on this on the system that that was incorrect and that it had to go be manually updated every single quarter and so that manager is no longer with the office that that is how that error occurred throughout those periods she was employed and she was the one responsible and so when we when we became aware we put some new checks and balances in place at there is a staff member now who prepares the nine forty one and the manager reviews it everyone is aware that the automatically generated nine forty one is incorrect initially and will need revision and we have a document review now in place so we are also looking to move to asus am hopefully soon in the next fiscal year. Okay does any member have any questions on finding number one. A a question I would ask is that the fourteen thousand two hundred and eighth paid for one incident do you capture that as a pool of employees and that's what direct finds us on no it is a days late so for example if we pay our payroll on the thirty first but that nine forty one generates that we paid it on the twenty ninth we are technically two days late so they are finding you for like the cumulative total however larger payroll was there some type of percentage there so we'd say a days late so we tried to explain to them that we were not technically played on our payroll that the form was just wrong obviously they accepted that for a portion but not all. Alright understand okay there's no other questions will move on to finding number two. The. Good so finding number two we were notified am a by pencil venue of some product activity that they identified they have a fraud investigation group there they notified us of this individuals information so we searched our own system just to see if we had any suspect fraud claims we did locate one at that point we entered it into our fried detection system so that that individual cannot file any subsequent claims with our office that's our preventative control for the future but we also self reported the legislative art it and we are actively you know contacting pennsylvania to see if we can get any resolution and get those funds back um you know join a lawsuit or whatever we need to do to get the funds back but right now at the balls and pennsylvania's court. Does any member have any questions on finding number two. II had a couple one that you just brought up so our engagement with pennsylvania is that something that pennsylvania as a state had unclaimed property in some individual acted on their behalf or is this we're just using pennsylvania as a it's a mass fraud scheme so there's a group of individuals working together in targeting certain and claim properties and they're making false ideas they're making false documentation and so whenever pennsylvania identified that they just send out kind of a mass alert to other states that's something that we do really regularly in the unclaimed property industry i'm just alerting people to you know here's a problem and then we were able to cooperate and so yes we do have this as well okay I understand and then the question I wrote down as the can you just briefly explain the process for verification for unclaimed property i've had a few constituents say that they've submitted it but then everything back and a year later it's still on there so they asked me for more particulars and I don't have the answer absolutely so we use the online sustained that forty eight other states use its really robust but I think a lot of the the fly is that we do a lot their email communications hold lot of times the skin situates probably received an email that went to hit their spam filter so that they're not receiving it so they think they're not being contact of other office when an actuality we are so individuals can file claims either online by phone or they can call into our office and do you know just start a claim by asking do a happening on claim property and so we have myriad of ways for them to get that information from us but typically if a files claim is sorted online that email communication is going to be the primary method so a lot of times we see that as a road block now if they've sent documentation into our office and to verify so they message verify that they are who they say they are that they have a right to claim that property and then if it's an air claim it gets a little more complex. Maybe some death certificates and airship information and then business claims can be complex as well you have to prove that you own that business and how the property should be split so if anyone has ever since something in and they've not received a response from our office I would encourage them just to call okay I understood. See no other questions without objection we will follow this report. Thank you thank you thank you. Okay the next report we have is a department of health june thirty twenty two report and this report contains one finding. During our audit four assets owned by the state medical board ten assets located within northeast region and thirty one assets primarily this intercomplex were selected for review. As result of this the issue was unable to locate one as a at state medical board and one asset from the northeast region the unlocated assets had a combined very combined historical cost of around twenty four thousand dollars sure that concludes a fine for the help department thank you sir looks like we've got representatives from their agency here if you would just identify yourself renew mallory secretary of health down items chief of staff thank you but for being here if you could just this one finding give us a brief snoption of how you took action second so what we had was the medical board that it was basically send in inventory to to uhm distribution and not filling out the proper paperwork so we went back we found other asserts we have folded them into our department inventory and we put the controls in place though that there's an onside inventory for the medical board so average things should be clean from from now on we also had one of our local health units that had um put the wrong serial member for an asset so when I looked at that i'm serial number there was no asset to match it and we did find that freezer. So there was no loss of any. Um any assets is any member have any questions for this yes representative richardson thank you mister chair what the assets so one was a freezer that was only what were they. And add up the other one was up a small desk the one that had been sent to m and r but they didn't fill out the paperwork to take that asset their inventory. Yeah. Thank you any other questions. Is there a pain thank you mister chair so in your response of comminger for going hidden investigating further it says a number of items were discovered and then you discovered the process wouldn't be followed do yeah can you give us a clue as to what can the number of items were talking about. So II don't know that we know know the number representative and what it happened is before we got the medical board they were they had a cpa that was looking at their financial assets and I think for inventory I don't think that was being done and the medical board just didn't know the process so now that we folded on me into our processes and this should not happen again then you're satisfied that in every instance those items were sent to eminor yesterday we have found a more thank you couple questions that I generate is is who has the authority to minor items within your department. That goes through our finance office if someone wants to turn something into uh then we have an invitory control section that they go through to do that for somebody in in upper level signs off on disposal of that asset before to move down to the facility estate office ultimately answers to our cfo joe thompson okay and the question is II just noticed in the in the response that it employee a test that they took the item down to m and r i'm not removed them in arbitrary they give you a hand receipt once that item is turned in and did that come with the reporter there the finding to my knowledge yes okay is anybody else having any other questions I see no more by this report thank you secretary mister adams. The next report we have is a department of human services june thirty twenty two report and this report contains four findings the first finding during our review of the public guardian bank accounts we noted eight accounts told about six hundred dollars whose inning bouncer were not reported in asis. The eighty was listed as a legal public guardian therefore such a catholic consider the dutier in nature and should have been included in the ending bank bounce has reported under the action fiduciary funds. The second finding during I reviewed the ac's arks or able investments of foster care trust funds we know the total of almost one point two million and foster care client funds had been sent by the act to a third party administrator for investment against multiple foster care client investment accounts of this amount about two hundred forty five thousand was sent for investment during FY twenty two and the remaining nine hundred thousand had been sent for investment during the prior three physical years. Our review noted two instances of check contributions being applied about a third party administrator against the incorrect foster care client investment account. We also determine the total arts or available investment amount at june thirty twenty two posted in ases was under reported by over ten thousand dollars. There's under reporting relates to three foster care clant investment accounts in which the age he had remained as trustee. The any bounce were not recording during the prior physical year as note in the prior auto report the ending bounce for these three foster care client best because we're again excluded from asus. The third finding the action notified us of an overpayment as a december twenty two regarding the following non emergency transportation contracts. Breather anch was overpaid three point four million dollars and central marks all development counsel was expected to be overpaid approximately one hundred and thirty seven thousand at the time of the actually notification. Payment for these two contract were processed the eighties medicaid management and information system and not in asis the division of medical services recently experienced significant staff turnover and new employees did not receive adequate training on proper procedures regarding the monitoring of even my us contract expenditures. In response to the ac discarry the overpayment DMS updated its procedures in order to mark her expensive paid date more closely and help mitigate future current of overspending. We review ten current contracts including the two mentioned in which we obtained m IS experience and summarize a toll amount paid from start date of the contracts through march thirty first two thousand twenty three we determined that none of the immimished contracts were considered overspent as of that day and that all contracts were supported by prove legislative contract amendments. However the ac suddenly notified us in august of this year of a confirmed overpayment of around eight hundred and five thousand dollars regarding c a d c's non emergent transportation contract. Although the ace he had been following its revised monitoring procedures the overpayment occurred due to an unexpected significant increase in monthly premium payment rates. And the fourth finding the day she notified us of the following and proper activity. Over ten thousand dollars impatience money funds was initially received by the archaeology state hospital in subsequently delivered to and receipted by the eighty cent receiving office for bank deposit. However as confirmed by an internal investigation none of these moneys were deposited into the bank and the employee responsible for the funds not deposit not deposited voluntarily terminated employment with the age the effect of february eleventh two thousand twenty three the actually reported the missing funds to law enforcement and as of our report date the funds had not been recovered. The second issue a tall of over twenty seven thousand dollars was paid to three state hospital employees for about fifteen hundred hours not actually worked. And you see the detail in the table that finding. The employment of all three individuals was terminated by the ac the improper payments have not been recovered in this report was referred to the prosecution attorney they conclude the five minutes thank you looks like we got representatives at the end of the table if you would identify yourself and we'll just go through these findings one by one. Mr ubank's deputy secretary for operations and badger and intermcfo. Brett hayes deputy chief council. Thank you both was just looking going through finding starting finding one if you were just give some history of what happened in with ages he's doing to correct. Yeah so these eight accounts that legislate about it I didn't have much like all identified these are accounts for guardians of the state and because we are a fiduciary on these accounts we are required to report these in asis and what happened in these in in this instance was that our office supposed guardian did not report the ending balances to our office of finance that's responsible for reporting that in asis so we've updated our internal procedures to require them to report that on the monthly basis and that's now being recorded in asis. They may be questions regarding funding number one. Yes sir senator can you give me the. A little more information only over payment at three point four million. Uh we not there where you're not there in three will finish the finding one ebay of questions for finding one thing thank you mister chair just real simple when we say ending balance are we talking about just ending as of a certain month or day or we talk about closed account now we're talking about the close of the state fiscal year and these people are continuing in our guardians so they were active accounts thank you to follow up on how many guardian accounts deal have oversight I don't know that exact number but we can get that for you hundreds or thousands or two about it's roughly around a hundred okay and then I guess a question for audit is that the was that a sampling or did you look at all a hundred. Do you know I don't recall for sure but we looked at at all I think we look at all the accounts to make sure that they recorded we may not have done detailed auto or callers cancelled just the eight that were not reported to. Any other questions regarding finding number one or else move on finding number two. The. Go ahead if you want to give it just a brief and opposite. So are division of children and family services uses these accounts so the children who will receiving assessor would continue to be resource income eligible currently we have a total of three hundred and twelve able account with a senses this includes accounts which are both endorment as well as active we currently have about two hundred and forty five activity out and it sixty seven dormant accounts uh we have pen in place a new monthly reconciliation process to monitor or investment I can't and we've also updated as to reflect the inning accounts for the balances that were not recorded through this fonding. Okay thank you for that has anybody with questions on finding number two. A question I had it's who's our third party that we used and why don't we do any this in house since the assistance is as an independent record he being services provider retirement plan third party administrator in government savings facilitator there actually and I identified through the able account process as handling these accounts understand thank you moving on to finding number three fourth please. So for finding three there's there's actually in in audit that noted this there's two different instances of overpayments we reported the first instance of overpayments in oct of october of twenty two and that's the three point four million dollars in the hundred thirty seven thousand dollars and the reason that we had that issue was as was noted we had a significant turnover in staff in our medicaid finance unit and we missed it you would say something nap I just want to be real clear the in in the sense of over a payment these are fees that were david owing for services that were written or rendered to medicaid beneficiaries so we did owe the many the issue is the legislative oversight in authority on the contract amount itself. As president a lc. So the deficit see in this case was related to uh the process that we had previously developed a monitor this spending wasn't followed this second instance that occurred in august a this year we had a rate reconciliation that took place for the non emergency transportation rate and we had not merit that we are not hit seventy five percent of our legislative legislative authority on the on that contract so the process that we have developed when we hit seventy five percent of the legislative authority division and finished leadership as notified to that we can monitor those payments more closely we were under that seventy five percent threshold and because the record ciliation took place it was higher than expected and that put us over the one hundred percent before we could start conducting enhancement monitoring of those payments now what we've what we've done in response is we're we're currently working on developing an automatic bar in our imminent system so that's the system that we used to pay our medicated claims and these these contracts are unique and that they are paid through the in the assistant and not through areas areas has built in controls so we're trying to build those controls into our in in my s system we're working on developing a bar that will prohibit us from making a payment after we hit eighty percent without a manual approval so we anticipate that that's going to be completed sometime in the first in in the first quarter of counter year twenty four. Okay thank you very much for that there are any questions for final number three senator rice that you had a question was there anything reported error are projected on the non average transportation contracts. No. Okay and you're saying that three point four million. Was frickly and oversight that was not brought through the correct process of legislative review. Yes that's correct. And this is after a few years ago and it was very contentious. That you shut down non emergency transportation vendors. Are they were out my back and say maybe not shut down but we. We changed. And went with those that were subcontracting. You remember there so we had a report of the contract yes that it's correct and some new vendors were added but these are necessary and required services but we also put them through the contract at review and oversought process at a lc as another budget tool but since that time we have done some other adjustments. To some of these card is that correct. I'm sorry i'm in a medical program. Thank. Please just identify yourself the committee. Uh jane at man deputy secretary for programs and medicaid director. And i'm elizabeth pittman director for division of medical services. Would you repeat your question for me senator rice you were of other adjustments we've had to make to the. Not an emergency transportation contracts we have made annual rate adjustments we have also come before alc when this overpayment process has occurred before to to ratify it but and then we reconcile the rates every year other than those types of changes where they're not some adjustment to covered. There was a lot of scrambling going on at the first part of this there was changes senator I probably the best one to speak to that I thought i'm not entirely sure i'm clear on what you're asking during covered we did work with the vendors there were some concerns over you know people not meeting rides in the amount of money we were paying so we worked with the vendors on how they could help us make sure that people knew you know what services were offered and and in that type of thing and then we also during that time period instituted something we call a minimum service requirement. And which requires them to spend ninety five percent of their rate on services and that we have implemented steering covered other than that they would know so i'm not aware of adjustments but if there's something you're specifically at asking happened to answer for you in my reason for bringing this up is one reporting is there for reason and in africa and through a contentious time in a back there were yeah I got a lot of calls back in the district I had at that time because they weren't getting pickups and all it was it's farmer but it it sure when perfect to start with but I have to go and think they had this a troubling thing to have seen the time i've been down here you do have people change it because the position change and there's not institutional knowledge with a lot of people to remember what we agreed to and to get it done in a foot in the law it needs to be followed for oversight in that matter concerned for bringing their service in it and you tell me there's nothing that has been projected or or whatever else is it just reporting and I appreciate that but uh there's a reason for that outside and I hope we continue to do that thank you senator dots and you're recognized. Thank you mister chair just with regards to this overpayment here was it that you just hit that seventy five percent percent threshold in didn't realize it in time but this was aca in the response here that. Uh. Where do I lost it here. It that you're required by law to provide these these payments in these services so you have to continue to pay it out whether or not you have legislative oversight or legislative authorization to make the payment or not with the contracted vendor and we just didn't. Get the the approval in time for this but these were necessary payments that had to continue to go out on a regular basis without legislative authority yes so they are paid through fee for service and the mmi system they are required service for the medicaid program if you qualify for transportation and then an extra layer of oversight is we do bring the contracts through legislative review and oversight for approval and then we have tried to set up the mechanism where when it hits the seventy five percent then we can begin the paperwork with are various divisions to bring additional over authority to your to continue the process and I but I believe due to a reconciling of rates we it threshold and hit it before we knew to start the paperwork for this for this time I mean and II recall what senator rice is kind of referring to it's been comma. Twenty eighteen twenty nineteen something believe it was in twenty nineteen we and we invited a vendor yeah so it. That was the longer time we deal with the overall contract but just so we have kind of an idea cause three point four million sounds like a lot to to miss by but. In total how much on a monthly basis do we pay vendors for this or not show on a more contract roughly I don't know in a monthly basis I think annually we spend close to. Forty million plus dollars so so basically this could be roughly a month or month and a half that we overshot it by it can be but it was also if the rates changed so they will reconcile on an annual basis so when they run that through if the rates went up or down then they will reconcile the entire year ok so it could be if it was a five percent or ten percent increase it could more decrease yesterday for five million overspend immediately before you got before alc to to get the legislative authorization yes okay thank you just to follow that do you do you have the amount the legislative authority to spend on that particular contract with uhm that bender. At we do and trying to make sense out of the sheet and I can't tell which vendors which we have three vendors and eight regions so they're divided by region and not by vendor but we spend. You ought me to do math. Uhm hundred and sixty one million in one vendors region thirty four. We're happy to get to the its numbers but it's it's significant amount of money every month and so yes when we went and did that rate and the reconciliation we did not adjust her monitoring forms to account for that and missed it by a month we stopped it as soon as we realize that and came to you guys to get authority to increase the contract okay and just this year's contract letting vs previous years are they roughly in the same target amount or just here a swept up take after the covered years it depends on their each i'm sorry i'm very hard for me to talk into this microphone each region is a little bit different and so like I said we have eight different regions in each regions gets a rate based on their own utilization some did go up slightly some went down I don't recall being a significant increase over all of the regions for this year okay okay so anybody have any more questions for binding number three. All right we'll move on to the final finding planning for. The. Both of these findings are finding that we sell for reported to a way the first founding is an installing where arguing saw state hospital patient phones were received in to the hospital for a deposit in two individual patient accounts that those phones were the trains ported over to our central office location and entered in with an employee in our cash management office and instead of properly were stating and depositing those the bank account it appears that this employee was scamming both cash and checks off of the top and the voluntarily left employment sometime earlier this year when we went through reconciliation process. Actually discovered the discrepancy in their patient account and we did a complete reconciliation on the accounts and noticed that indeed phones were missing we have referred that to arkansas state police and it's my understanding that that case is with the and we have replenished those many's two patient accounts to pay accounts hole today on that we have not recovered any phones and friend the suspected former employee so again that going through law and forcement channels at this time so so we'll hold on that issue first as him are questions regarding the specific issues and repayment thank you mister chair and so you answer part of our question when you said you reconcile the patience accounts to make sure they had credit for the money they pay so obviously I guess they didn't have credit at the time that they paid. Did we make sure that any late fees or anything that was turned over to collection agencies. Was reversed so these accounts are all in accounts we actually hold as fiduciary accounts on behalf of the other patients themselves so it's really win a loved one comes in earn to visit someone at say hospital they may say here's you know twenty dollars will you please pick this on my sons account for instance and then we hold those accounts uh fiduciary for those patients so there was no no top of overspend or anything like that thank you thank you mister chair. Yeah. Am so did just a follow on we referred this a long forcement do I have any type of report from law force the proski attorney or the tournament general's office about status of this recovery respectfully I would refer you to the architect state police I don't want to comment on the status of their investigation but II will add that uh for for this for this specific finding and I think the other that were about to address the the self insured fidelity bond program provides coverage for losses sustained by government entities that uh sustained a loss through fraudulent or dishonest acts of their employees and it's my understanding that legislative audit would refer that claim to this board and then that board would have to review the claim to determine uh if the agency can be reimbursed for those acts. It would do that minister willington yes it would be referred to them as well okay any other questions for this part of the finding our actor i'd proceed with the second plan your second part of the finding yes so the second finding that we sell for reported ways and for a total of twenty seven thousand four hundred and nine dollars regarding clocked hours in town that were not actually worked and this was concerning three arkansas state hospital ample ways all three of the employees were subsequently terminated by the agency do the groceries kinda and these cases have all been turned over to arkansas state police for investigation. The. Thank you turned the members and a member have a question on this particular one. Get a question that I let I generate it is in fourteen hundred and fifty five hours I mean it's three force over over two thousand eighty hour work here was this employee part part part time and just got on the on the clock for full time work and never showed up or repainted for three thousand hours worth of work so our our surveillance showed and and we have surveillance footage for thirty days that this employee was traveling to work in the early morning hours clocking in leaving driving back at the end of the day and clocking out so we had we had thirty days worth of surveillance video that confirmed that we went back and looked at the scheduled hours that they were working over the last year and compared that to their clocked hours and that's how we were able to come to that fourteen hundred fifty five hour number so essentially they were you they they were clocking in for significant number of hours more than they were scheduled to work. So so to ash employees not have direct supervisors. Yes they do so that there's a supervisor required to sign off at the physically saw an and council door because this goes from july eleventh twenty twenty one september twenty eight twenty twenty two surely there's a quarterly valuations where. The you know and I know as in my management days I absolutely would know exactly status of my employees and how much they got paid so it's part of my budget but if you could just explain that for me j hill director for aging it on behavior health this particular employee was a pool ploy was behaviour health aid so there's no set scheduled no set unit that that this this person would be assigned to this it was on a regularly scheduled. Position so a supervisor would not necessarily recognize if they were there one day not there the next because they would have been scheduled all over the hospital on bearing schedules with no set no set time frame. So this is a trusted employee but not a trust but verify employee position the poor employees well they are now and so what we do now our supervisors do reconcile the schedules and the attendance versus presence or if time has turned in for leave and it does or verified that the individual actually is not there and as mister hayes that suggested we do have video survivors monitors that we're now able to verify that against okay all right does any other member have any question on this concerns comments. Consider data thank you. So you talk primarily about the one employee that went to through september of. Twenty two but then two more started doing this at how did you find those other two in october of twenty two. So the other two employees were working in collision it was it was reported to the hospital from an individual that they may be doing the same thing and so at the hospital we can verify that and went back as part of our monitoring problem we found this looking at our our procedures and our policies at what we do and discovered using our cameras that they were also coming clocking in leaving our clucky one another and without being present hospital and so that was after you'd already found the one employee that was the month following this employee so so a couple others have that sounds like a good idea let's figure this out you didn't go back before that they just started in october after the first employee was fired. II don't recall how many months or how many days of surveillance we did but we can we can get that specific information for you because we we conducted our internal affairs unit conducted investigations for both of these so we have a pretty substantial file on those okay thank you representative flowers you're connected thank you act just wondering what was this person's role in that in the hospital i'm just wondering what like what do they do or what would they suppose to be doing. This the individual was I behavior healthy. So it is a it's a certified it's it would do with a sort of opposition it's not a license position it's not a nurse it is an is an assistant on the units working with. Very similar to AC n n button. Yeah. So to repeat and you reconnect thank you and represent the basically asked my question but to follow up on that. Oh what type of how can they not sure if it work and still do the work that was expected of only do you have any. Production goals are in base. Who's given a more work assignment and how's that work as I am getting done. So we have we have a supervisor who is who manages our pool employees who overseas them who makes takes that out that that initiative to determine what you they may be needed on what day what time framework shift that individual is no longer working for the state hospital is determined as well so to your point there is a there's a necessity to have them there to provide those services our supervisors don't know them for say as a rotational staff member and so if they're there if they're not there it's not something that necessarily rise it raises a red flag because the supervisor may not necessarily see that individual scheduled. For. One week to the next week or maybe multiple weeks in between seeing their name on their schedule seems like if they're not there. Somebody or somebody or some things being neglected. To get done. Yes. No you're correct we need all of our staff we are certainly short staff we in the healthcare industry across the board we we say shortages of behavior health aids of lpns of orients it's a it if it's a message it's a missed individual we supplement our staffing rotations with agency nurses we have to we do the best that we can to bring in the the amount of staff we need to safeguard the patience and still provide the services that they thank you. And can you remind the committee again what steps are taken to whether to recover the phones but also criminally charge these employees for the theft yes both of these cases were referred dark itself state police. I guess I asked whether of the authority to ask status of the cases I don't know the status will refer this report today to the prosecution attorney and the bond board but other than that I don't want to start a state police medication is I guess my follow up question that means if we forward this report we saw the authority to bring it back to talk about that issue specifically as the committee whatever the will the committee is you can do that. That need to be in a form of emotion yeah that's this for the committee to decide what the front page they want to do. Is it I guess I sell as the the body here does anybody want to want to see this come back to to follow up on on how both this and the previous finding were handled with how we'll say this much we have report going to mar this the dispation of everything we refer to the PA we do that report every year so you all will see the states of each report that we refer to the pay whether it be this committee or education or local and so we do that every year so that report for that every year so there will be some follow up from that perspective for sure. Okay well that works for me there's any other member have any questions for DHS. All right without objection will follow this report thank you thank you both for coming. The. Our last report today is the department inspector general june thirty twenty two report this report contains three findings. The first finding. The age he receives medicaid reimbursement checks resulting from overpayments identified by office of medicaid inspector general audits. The eighties response were ensuring that these checks are transferred to me to the h s which is responsible for depositing the checks into their property medicaid bank account. Our review of thirty checks revealed the action fell the transfer fifteen checks towing over forty six thousand dollars to DHS timely. Our review of thirty three hours from the archaeological housing commission check logs in related deposits revealed nine checks tolling a thousand dollars we're not included in the monthly check logs. Four checks telling that hundred were not deposited timely. And we were unable to turn with one check with deposit time because the date the check was received was not documented. Our review of receipts also revealed that a check logs not being maintained for the also internal audit. In addition. The commission were saying settlement check resulting for fair housing cases and it was spot before ensuring those checks are forwarded to the appropriate entity our review available in two instances for checks telling twelve thousand dollars that the commission was able to provide corresponds with an entity however the information in the correspondence was inadequate because it did not specifically state that settlement checks were enclosed. Finally we were unable to determine where the three settlement checks telling twenty two hundred dollars were submitted tomato the appropriate energy because the date the checks were forwarded was not documented. The second finding our review of luck some payments revealed that the actually failed to update one employees one employee's important record timely the employee's last working day was july twenty third two thousand twenty one. How are the employees pay for the such point pay period ended august seventh two thousand twenty one. And result in overpayment occurred to almost fifteen hundred dollars. Also the ace you failed to process the holiday lump sum payment for another ploy tolling a hundred eighty one dollars. And the third finding in the court of that nineteen of two thousand nineteen the office that the office of medicaid inspector general became part of the new creative cabinet level department in the spectrum general along with the archaeologist housing commission and the department of fast administration internal audit division as part of that transition the department began allocating certain costs between the various divisions. The ace did not document their allocation process therefore our understanding of the process was obtained through discussion with eighty staff. And that understanding is is reflected in both a three c of the finding. I review the process revealed several inconsistencies and deficiencies is not in the various bullets under the rent allocation. Other administrative experience allocation and salary allocation sections of the finding. We determine that because the action failed to document its allocation process and adequate inconsistent review was not being performed. The increase is seated and performing calculation provide the opportunity for manipulation and do not ensure expenditure allocated as intended mister includes the spanish for inspector general thank you very much so we got couple representatives of the table if you would identify yourself all to start funding number one. I'd do that every time i'm alice and brag secretary inspector general. Yes i'm simply a burden and the chief financial officer for the department. In to start with finding number one not to rehash the entire report since it was just read two s but the first finding is really about deposits not being made timely this department doesn't it and take a light of cash and checks it's not really a financially heavy department but there are some I think because of the ever regularity of that there was not really a firm procedure in place and so once we realized this we established a weekly thursday check in of deposits we actually checked on that this morning since today's thursday and when we went to check on it are administrative assistant was on his way to dhs to hand off some checks to dhs because it's thursday and that's what we do now we make sure we do that every thursday. Okay so on this fine is any member have any questions for their senator repeating. Thank you miss mister chair and thanks for your spots but. What i'm reading here in the agency response is all incoming checks will be logged within twenty four hours and all checks will be deposited. Does date treasury with them forty eight so I don't know how every thursday accomplishes that that's for for their housing the fair housing commission I should have said this in my initial comments there are check logs and their money is kept completely separate there was a finding a couple of years ago where there was an issue with fair housing money being in or twined with money and other agencies within the department and because of that there are separate there's a separate set of circumstances for fair housing and so I should have said that when I first addressed how we've solved that the thursday deadline is for our other three agencies and the twenty four forty eight hours is what we've implemented for fair housing mostly because it has so much it's almost entirely federally funded and those procedures are governed by head. Go thank you yes sir. Yeah. Any other questions for finding number one. Just pursued a funny number two please. Yes sir finding number two is a situation where a lump sum payment I think an issue with two lump sum payments win of an employee that left and was overpaid and then one of an employee that left and did not receive holiday pay we've sent that second one we've already paid that employee they've received that holiday pay and that's been taken care of on the first one where the person was overpaid at their departure we've sent a certified letter to that person we have not received any indication that they've signed for it and so our next step is to submit that information to dfa my understanding is they have a procedure where they can do a set off income tax refund if that money has not been recovered otherwise prior to that in the bigger picture we have decided to have our new cfl review all up some payments before they are sent out and we're hopeful to catch any of that before there's a similar error. Okay thank you I guess to just follow up on that I know you're your new in the role but it's a two year window that were we're just now forwarding that on. That's my understanding I wish I had a a reason why that's the case I don't I don't have a good answer for that I apologize. Okay member have any questions for finding number two. The. Okay moving on final number three. Thank you finding number three is really about cost allocations i'm mentioned a moment and go we have four different agencies within our department and when that first started it seems like there was some stumbling with how to set up who pays for what I think we have solved that problem initially they attempted to determine cost allocation by time sheets and I don't think that turned out to work very well and so much beard in our new cfo has looked at a cost allocation plan that is instead determined by budgeted positions so we have looked at the percentages of our department and what they're made up of within each agency and then each agency contributes to shared services based on the percent percentage of budgeted positions and so we're hopeful that that will be simpler and more correct going forward. Okay anyway uh any member have any questions for finding number three. All right see none we'll follow this report without objection thank you both for ten common alright see nor their business before this committee we will stand adjourned until january thank you.