Tuesday, December 8, 2009

DC Inspector General: $180 Million in Waste, Fraud Found in '09 Fiscal Year

The DC inspector general uncovered more than $50 million in waste and $125M in fraud during the past fiscal year, waste and abuse that account for more than 3% of the District's annual budget. The IG's audit division in FY09 issued 35 reports with hundreds of recommendations that if implemented would return $50.3M to DC coffers. The investigations division of the IG during 2009 presented 37 cases of fraud to the U.S. Attorney's Office and eight to the DC Office of the Attorney General, resulting in 25 arrests, 17 indictments, 16 convictions and restitution orders totaling $127.2M. The Medicaid Fraud Control Unit garnered an additional $2.1M from provider settlements. Of the District's $5.4 billion budget, $180M amounts to 3.3% lost through waste, fraud, or abuse. The use of purchase cards by the Office of Unified Communications was the subject of a February audit in which the IG discovered numerous questionable or unjustified purchases -- including $15,000 to clean and maintain chairs and $59,365 for uniforms worn by employees who don't meet with the public. In November, OUC charged $900 for staff massages. read the full story in the Washington Examiner

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