AP audit uncovers duplicate payments, misappropriation of $2.34 million

The Michigan Department of Community Health is under fire after an accounts payable audit revealed the organization had improperly spent more than $2 million, some of which were duplicate payments made to the state's Medicaid program for medical supplies and devices.

According to The Detroit News, the AP audit report revealed that most of the instances of misappropriation were due to duplicate payments given to Medicaid for a variety of medical equipment supplies, including prosthetics and orthotics. The audit also included several recommendations for the department, all of which it has agreed to enforce in order to improve its financial and bookkeeping transactions, the source states.

MLive reports that the organization's misappropriation took place between October 2009 and June 2012. Along with the duplicate payments, investigators also found that the Michigan Department of Community Health did not establish accurate rates in accordance with its policies. In addition, there was evidence of inappropriate payments made on behalf of dually enrolled beneficiaries. There was also a lack of financial oversight, as approximately $681,000 was paid out without the proper authorization, the source writes.

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