Teh One Who Knocks
12-11-2013, 12:48 PM
By Joey Bunch - The Denver Post
A scathing audit of the state program intended to train disabled people for jobs found that millions of dollars have been misspent with little or no oversight, while people who need the program languished on waiting lists.
The audit of Colorado's Vocational Rehabilitation Program, presented to a legislative committee Tuesday, found "concerns" in 98 percent of the cases that auditors reviewed.
In many instances, administrators and staff didn't understand state and federal laws that govern the program, including how long people can receive benefits, auditors found.
One person received $203,000 over 32 years without moving any closer to employment. Another was paid $315,000 to pursue a variety of unfinished degrees — including from a university in the Caribbean — over a 19-year period and still doesn't have a job, the audit found.
A client who got more than $2,000 for job training spent the money on personal expenses instead, while another got $1,300 for a laptop computer but then exchanged it for a video game system.
The audit also found $13,800 in questionable charges on the program's credit card, including a tent, gift cards, children's clothing, tools, and household and cleaning supplies.
The report flagged $171,000 in bonuses to job-placement vendors, on top of $340,000 in regular fees, although the bonuses did not appear to be "reasonable, necessary or allowable under federal requirements."
The program, which serves nearly 20,000 people, spent about $53.5 million in the current fiscal year. As of August, nearly 4,300 people were on the program's waiting list, while others continued to receive benefits year after year without finishing their educations or finding a job.
Audit committee member Sen. Lois Tochtrop, D-Thornton, said she was "very appalled," and Sen. David Balmer, R-Centennial, questioned whether fraud charges were appropriate.
Jenny Page, the legislative audit manager who presented the report, said that although there was no obvious proof of fraud, there were pervasive mistakes and misunderstandings of the law.
In some cases, vendors billed for the same services more than once, "but it wasn't clear whether that was a mistake or intentional," she said.
Reggie Bicha, head of the state Department of Human Services, asked for the audit after the assessments he received from former division administrators didn't match the data. He promised immediate reforms.
"We can do a much better job of being good stewards of the taxpayers' resources," he said.
Bicha said the problems were the product of a "risk-averse culture" to approve every request and leave people in the program indefinitely, rather than challenge suspicious claims.
The program, however, has been the subject of critical audits in the past, and no substantiative changes were made, Page said.
Viki Manley, director of the state Office of Long-Term Care, has been put in charge of overseeing reforms. Manley cleaned up similar problems with the Colorado State Veterans Nursing Home program, Bicha said.
In October, Joelle Brouner was hired to run the division. She served in a similar role for the state of Washington.
Nancy Smith was the division director until about six months ago. Manley would not say whether Smith was fired, only that there was a "settlement process" and Smith no longer works for the state.
In an interview, Brouner and Manley said they had already reassessed half of the division's cases. They spoke of restoring the public's trust.
"It's totally unacceptable," Manley said. "Nobody here thinks it's acceptable.
Brouner said the audit's findings should not be a black eye for the value of the program.
"It is not a waste of money to help people with disabilities cultivate the skills necessary to find employment," Brouner said. "Not when the alternative is for government to support them their whole lives."
Gov. John Hickenlooper, who has spoken often about being a good steward of the tax money, declined to comment through his press office, but his spokesman said steps were being taken to correct the problems.
A scathing audit of the state program intended to train disabled people for jobs found that millions of dollars have been misspent with little or no oversight, while people who need the program languished on waiting lists.
The audit of Colorado's Vocational Rehabilitation Program, presented to a legislative committee Tuesday, found "concerns" in 98 percent of the cases that auditors reviewed.
In many instances, administrators and staff didn't understand state and federal laws that govern the program, including how long people can receive benefits, auditors found.
One person received $203,000 over 32 years without moving any closer to employment. Another was paid $315,000 to pursue a variety of unfinished degrees — including from a university in the Caribbean — over a 19-year period and still doesn't have a job, the audit found.
A client who got more than $2,000 for job training spent the money on personal expenses instead, while another got $1,300 for a laptop computer but then exchanged it for a video game system.
The audit also found $13,800 in questionable charges on the program's credit card, including a tent, gift cards, children's clothing, tools, and household and cleaning supplies.
The report flagged $171,000 in bonuses to job-placement vendors, on top of $340,000 in regular fees, although the bonuses did not appear to be "reasonable, necessary or allowable under federal requirements."
The program, which serves nearly 20,000 people, spent about $53.5 million in the current fiscal year. As of August, nearly 4,300 people were on the program's waiting list, while others continued to receive benefits year after year without finishing their educations or finding a job.
Audit committee member Sen. Lois Tochtrop, D-Thornton, said she was "very appalled," and Sen. David Balmer, R-Centennial, questioned whether fraud charges were appropriate.
Jenny Page, the legislative audit manager who presented the report, said that although there was no obvious proof of fraud, there were pervasive mistakes and misunderstandings of the law.
In some cases, vendors billed for the same services more than once, "but it wasn't clear whether that was a mistake or intentional," she said.
Reggie Bicha, head of the state Department of Human Services, asked for the audit after the assessments he received from former division administrators didn't match the data. He promised immediate reforms.
"We can do a much better job of being good stewards of the taxpayers' resources," he said.
Bicha said the problems were the product of a "risk-averse culture" to approve every request and leave people in the program indefinitely, rather than challenge suspicious claims.
The program, however, has been the subject of critical audits in the past, and no substantiative changes were made, Page said.
Viki Manley, director of the state Office of Long-Term Care, has been put in charge of overseeing reforms. Manley cleaned up similar problems with the Colorado State Veterans Nursing Home program, Bicha said.
In October, Joelle Brouner was hired to run the division. She served in a similar role for the state of Washington.
Nancy Smith was the division director until about six months ago. Manley would not say whether Smith was fired, only that there was a "settlement process" and Smith no longer works for the state.
In an interview, Brouner and Manley said they had already reassessed half of the division's cases. They spoke of restoring the public's trust.
"It's totally unacceptable," Manley said. "Nobody here thinks it's acceptable.
Brouner said the audit's findings should not be a black eye for the value of the program.
"It is not a waste of money to help people with disabilities cultivate the skills necessary to find employment," Brouner said. "Not when the alternative is for government to support them their whole lives."
Gov. John Hickenlooper, who has spoken often about being a good steward of the tax money, declined to comment through his press office, but his spokesman said steps were being taken to correct the problems.