Audit: Millions spent, but how?

Two state (of Ohio) agencies in particular can’t spell out their use of federal money
By Catherine Candisky THE COLUMBUS DISPATCH

Ohio can’t say whether $20 million in tax money given to charter schools was properly spent, and a faulty electronic payment system caused the state to overpay Medicaid providers as much as $13 million.
Those are two of the bigger concerns raised in an annual audit of the state of Ohio.
The 307-page report released yesterday by Auditor Mary Taylor questions more than $35 million in state spending last year that could not be accounted for by state agencies.

Most of the concern stems from spending by two of the biggest state agencies, the departments of Education and Job and Family Services.
"During these tight budget times, it is critical that state agencies utilize public funds, including federal funding, in a wise and cost-effective manner," Taylor said. "When an agency can’t account for how federal dollars are spent, it puts that agency at risk of losing future funding."

Taylor said Job and Family Services should seek reimbursement of overpayments to providers of Medicaid, the state-federal health-care program for the poor and disabled.

The audit found providers were reimbursed in excess of allowable limits in 231,278 instances. However, analysts were not able to say precisely how much of the $13 million was justifiably allocated and how much was overpayment. The excess was estimated at about one-third, or more than $4 million.

Auditors also raised concern about caseworkers manually overriding the state computer system that determines eligibility for the food-stamp, welfare and Medicaid programs.

Last year, the auditors found an average of 15,480 overrides a month.
Agency spokesman Dennis Evans said the department would review the findings to determine whether it was following state and federal guidelines. If overpayments were made, the agency would seek reimbursement, he said.

The audit also raised concerns about county caseworkers failing to ensure that resident aliens had the proper documentation to get government benefits. A random check of 20 in Franklin County found four were not eligible.

The audit found that the Department of Education was not making sure that charterschool operators were spending tax dollars in accordance with state and federal guidelines.

Department spokeswoman Karla Carruthers said the agency doesn’t dispute the findings and has taken steps to correct the problem.

"We’re now going out and doing on-site monitoring at every community school that receives a federal grant," she said. "We believe that we’re doing a better job now."

The audit also criticized the office of former Secretary of State J. Kenneth Blackwell for how it handled money from the federal Help America Vote Act.

The audit did not determine that the $132 million the state has received since 2003 to buy voting machines and related items was misspent, but it found that some funds were sent to counties in lump sums and simply held instead of being distributed only when expenses were incurred, as federal rules require.

Counties are returning unused grant dollars to the secretary of state, and policies for distributing the money are being revamped, the audit said.

Also, $7.1 million in interest earned from the federal money was improperly sent to the state’s general fund instead of being kept in the state account for federal grants, the audit found. The money since has been transferred back.

Dispatch reporter Mark Niquette contributed to this story.
ccandisky@dispatch.com

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