REPORTS ON DHS STAFF FALSIFYING DOCUMENTS AND IGNORING KICKBACKSWe had another frustrating hearing in the House Fraud Prevention and State Oversight Committee this week. The nonpartisan Office of the Legislative Auditor (OLA) discussed two recent audits of programs in the Department of Human Services. Investigators found employees backdated and falsified documents in the Behavioral Health Administration (BHA) and, separately, that the agency failed to investigate kickbacks, even though it has the authority and duty to do so. You read that correctly. Employees in the Walz Administration were found to have actively hidden or ignored Minnesota’s fraud problems. In January, the OLA audited the Behavioral Health Administration's approximately $200 million in annual grant funds to mental health and drug and alcohol addiction providers. Shockingly, the report found that not only did state employees mismanage the grant money, but they also participated in a cover up by fabricating documents to cover their tracks. And it didn’t happen just once. The OLA found the agency’s actions were a “systemic” problem. During its audit, multiple DHS employees created new documents or backdated others in hopes of throwing up a smokescreen and evading further scrutiny of their actions. In a second report investigating kickbacks in the Early Intensive Developmental and Behavioral Intervention (autism) program, the OLA found three instances where credible complaints that autism providers had offered kickbacks to parents to bring or transfer their children to the provider for autism services. All three times, its Office of Inspector General closed the complaints without investigation, stating DHS did not have the statutory authority to investigate allegations of kickbacks alone. In fact, the OLA found that DHS had the authority to investigate and sanction providers for “credible allegations of fraud,” including kickbacks, because they had the authority under federal law to investigate kickbacks as outlined in the federal Social Security statute. It is amazing that the agency incorrectly created a rule that allows it to misinterpret the statute and then, based on its own failures, continues to claim that it can’t stop kickback payments. Bottom line: it’s tough to stop fraud when agency officials are actively participating in it. To hear some of my comments during the hearing, click here. |