An accounts payable recovery audit of Richmond, Virginia's Department of Social Services CSA and Foster Care recently uncovered significant funding mismanagement, including over-billing, duplicate payments and a lack of checks and balances, WTVR reports.
Of the department's $74 million budget, $3.4 million was identified to have been over-billed to the state, a March audit revealed. The latest investigation, which analyzed the period between fiscal years 2007 and 2009, resulted in the city being ordered to repay an additional $671,000 in over-billing to the state. About $400,000 of this is comprised of unrecorded vendor refund adjustments and voided checks.
Additionally, roughly 12 percent of accounts payable transactions were found not to be supported by adequate documentation, and numerous incidences of noncompliance with program requirements and internal control deficiencies were identified. These contributed to the fact that the city was able to recover just $16,000 of the approximately $74,000 worth of duplicate payments and overpayments that occurred during the audit period.
The results of the audit were released days after a similar investigation of Roanoke's social services department found that the department inaccurately paid for services it had not received, according to the Roanoke Times.