Tuesday, December 6, 2022

State Auditor Finds Covid Relief Funds Misspent

State Auditor Shad White issued the following statement. 

State Auditor Shad White’s team discovered millions of questioned costs according to their newly released Single Audit of federal funds flowing through Mississippi. The audit includes federal funds spent by state agencies from July 1, 2020, to June 30, 2021. During this time, many state agencies were drawing down federal stimulus dollars from the Coronavirus Relief Fund (CRF).

 

“I want to thank the dedicated team of auditors and support staff for their work on the Single Audit,” said Auditor White. “We are committed to shining a light on how the state handled the massive amount of stimulus funds that flowed through Mississippi. This audit is intended to let the taxpayers see how their money was spent, warts and all.”

 

Notable findings in the audit include:

 

•     The Mississippi Department of Employment Security (MDES) handled unemployment compensation, and they saw a 301% increase in known overpayments from the previous year. MDES made at least $473 million in improper or fraudulent unemployment payments this year. Those included unemployment payments to prisoners and people outside of Mississippi.

 

•     MDES also spent stimulus money on workforce training equipment unrelated to combatting COVID-19, making the spending improper under stimulus rules. For example, the agency spent thousands on drones for workforce training. Due to national security risks, Congress has banned federal agencies from purchasing the same made-in-China drones MDES purchased for use in our state.

 

•     The Mississippi Division of Medicaid continues to provide funding to potentially ineligible recipients. A similar finding was included in last year’s Single Audit. As a direct result of that finding, federal prosecutors filed suit against two individuals who own multi-million dollar homes but still received Medicaid benefits.

 

•     The Mississippi Department of Education (MDE) failed to follow proper procurement guidelines. Specifically, MDE allowed an eventual contract-winning vendor early access and the ability to suggest edits to the procurement specifications. The eventual winning bid was chosen due to vague product details. The winning bid was not one of the two lowest-priced bids.


•     Multiple state agencies failed to properly monitor CRF spending by sub-recipients. This means other organizations—like nonprofits—were not appropriately monitored after being selected to operate government programs. Years of similar findings at the Mississippi Department of Human Services preceded the conviction of 5 individuals connected to the largest public fraud scheme in Mississippi history, which was uncovered by the Office of the State Auditor.

  

46 comments:

Anonymous said...

How is this not a huge story? They overspent almost a half a billion dollars!

Anonymous said...

Surprise Surprise Surprise, Who would have ever thunk it.

Anonymous said...

Red herring. Back to TANF.

Anonymous said...

$473,000,000.00 “ misspent” in one year by one agency!

Anonymous said...

MDES got exposed. Their is no leadership or management there anymore. Just products of the system.

Anonymous said...

"MDE’s Chief Information Officer forwarded a draft of the “Prime Contractor Requirements” or specifications to a member of the winning bidder 20 days before the RFQ was officially released."

Anonymous said...

Ooops!

Anonymous said...

Would be an interesting 'audit' to find out how many millions the hospitals pocketed by labeling 'covid death' to every person who died (no matter how they died). Falsifying medical records for money. Did they die 'with' or 'from' covid??

Anonymous said...

It's weird how Shad can present all of this stuff and no one has a come to Jesus moment. Just one of his findings alone freaks me out.

Anonymous said...

@1:47 - you have no idea what you're talking about. Go do some actual reading and research, and you'll find that the additional payments were triggered by a COVID positive test. Once someone tested positive for COVID, the hospital got the extra payment. Doesn't matter if they died or not, or the cause of death.

Essentially it doesn't matter if they died "with" or "from" COVID - the hospital got the extra Medicare $ both ways.

Now, we can all debate (and probably agree) on whether they deserved that extra money, but that's besides your (incorrect) point.

Anonymous said...

Were these funds dispersed in an EQUITABLE way ?

Anonymous said...

MISSISSIPPI—> SPENDING = MI$$PENT

Anonymous said...

This is why "they" want to expand Medicaid.

Anonymous said...

How do I read about the MDE funds? Who was the winning bidder? Was it another state entity?

Anonymous said...

Shad has been sitting on this because he knows he's getting a primary opponent (maybe 2).

Anonymous said...

Based on Shad’s history, this is likely nothing more than political wrangling with little substance to support his conclusions.

Anonymous said...

Lots of people are due soon to have motions etc heard in the DHS case….Shad’s going to take some hits from defendants from all over most likely. It’s going to be something an opponent could use against him. He’s going to be exposed on some things and the offering plate circulated at Rotary Club meetings won’t cut it.

Anonymous said...

@2:21 - that may be but how many death certificates in the last 3 years show a cause of death as COVID when they shouldn't?

Anonymous said...

Were these funds spent on diverse, inclusive, woke, and equitable projects? If they were, case closed.

Anonymous said...

MISSPENT is another word for stolen. There are a lot of lawyers in Mississippi who got rich off of the government wasteful spending, but they are lawyers so it is okay.

Anonymous said...

@2:52, the EDLA contract is online: https://www.mdek12.org/MSConnectsTech/EDLA

Anonymous said...

@2:53, who are these alleged challengers?

Anonymous said...

What's truly disgusting is how many low income people who were actually affected by the lockdowns were ACCUSED OF AND CHARGED WITH UNEMPLOYMENT FRAUD for collecting unemployment checks when they lost their jobs or had to go part time.

A lot of them were casino workers and many articles were written about it.

So these people got the books thrown at them for collecting a few thousand bucks after they lost their jobs. Meanwhile, people got away with taking MILLIONS fraudulently and the State looked the other way.

Anonymous said...

@3:46, Senator Briggs Hopson (establishment wanting to beat Shaf) and Representative McCarty (young guy). Maybe just rumors, but it's interesting to consider.

Anonymous said...

@3:23, Shad isn't in Rotary. He is afraid to join ANY local organization. He is much happier behind a keyboard or in front of a camera, not actually being in the community.

Anonymous said...

So where was the Dept of Audit & its executive director while all of this was going on for several years.

Anonymous said...

The woman 'in charge' at MDES was, until jettisoned by Reeves, a career clerical/technical employee blessed with promotions as a result of hanging around forever. This is what happens when career 'hangers on' are promoted above their level of competency. It's a miracle she has not been indicted.

This is just one more example of an incompetent person being put in charge of an agency due to the fact that the job is not viewed as important, a 'place-holder', if you will.

Anonymous said...

MDES is 100% federally funded. If they are guilty of misapplication of funds, how does that work? It's easy to blame it on simple incompetence of career hangers-on. Nothing will happen as a result of pissing all these millions out the window.

Anonymous said...

Shad has never had a real job outside politics. He’s a politician through and through now.

Briggs Hopson is more mature, has more of a professional temperament, and isn’t as prone to boyish social media tirades as Shadrack.

It would be nice to see someone legitimate primary Shad just to make the boy have to work for it.

Anonymous said...

Most of findings are not concurred with by the audited departments. The responses are petty and argumentative. This report looks pushed out at the 11th hour. Sloppy work.

Anonymous said...

you know its election season when after years of picking on small dollar crimes and demand letters for protests that shad is now looking at big state agencies. Interesting to see where this leads. Wont be the governor's mansion for him.

Anonymous said...

Briggs running actually excites me.

Anonymous said...

Opportunistic target. Fish in a barrel. Go get ‘em Shad. Best wishes on your political future. Steer clear of racism and your cronies and the votes will just come rolling in.

Anonymous said...

The person complaining about MDE is all the same person. Asking questions and sharing the links. You forgot to mention all parties received the RFP before it was issued. I'd bet you are affiliated with the losing respondent aren't you?

Anonymous said...

Hopson is on an ego trip. His ego puts that of Shadrack in the shade.

Anonymous said...

I don’t get it. Are people going to jail? Or is he just squawking in an attempt to remain relevant?

Anonymous said...

I've known the Hopson familky for years. Briggs would make a great Auditor in the election in 2023!

Anonymous said...

Still don't understand how Shad missed the misspending at DHS for all those years. He's bragging about their single audit now, but why didn't the single audit catch the grossly obvious financial shenanigans going on at DHS???

Anonymous said...

Don’t give me any Bill or Jeff or Tom. I always prefer a candidate for office to have two last names like, say, Evans Carter or Bragg Boynton or Briggs Hopson or Tate Reeves. It gives me a feeling that he’s competent and wears a three-piece suit with a fob on a watch and chain.

Anonymous said...

8:51 - Tell us more about your being excited. Do you have these feelings often? Does the excitement cause embarrassing facial redness or weak knees? Do you bite your wrist and whimper when the feeling overtakes you? You'll feel better if you go ahead and get this off your chest.

By the way, a long-time career politician being put in charge of investigations that may reveal misdeeds by other long-time career politicians is a terrible idea. As Jim Hood might say, "It would be like investigating members of your own family".

Anonymous said...

UH...how have so many of you ignored that the agencies have been in GOP control for a very long time now?
I certainly hope Shad will "follow the money" to where it arrived.
But,IF it arrived in an ineligible "DEM pocket", then GOP incompetence is the reason.
Show us the chain of evidence.
God knows, whether it's Hilary Clinton or election fraud, if, in all these years the GOP can't find anything, it's because they are incompetent or it was never there to find.
Where is common sense these days?

Anonymous said...

@9:03 Shad missed the years of misspending/fraud because he was not the auditor. He was appointed in 2018.

Anonymous said...

As a CPA I applaud the staff at the Auditor's Office for their thorough work. Every finding has to be properly documented and researched. The Single Audit is always published around year end, and this one covers the use of federal funds from July 1,2021 through June 30, 2022. It may be the least political document ever published by government office, only facts are allowed.

When the auditor does his job, he steps on a lot of toes. Seems like a lot of sore toes posting.

Anonymous said...

One of my patients had coronary bypass surgery after presenting with a terrible EKG. 1 day post op his suture lines failed and he bled out and died on the floor. On his death certificate his cause or death was listed at COVID-19. I got a copy of this and passed it to his wife. I hope she uses the shit out of hospital. Such a travesty punctuated by a brazen lie.

Anonymous said...

If incompetence were illegal, the past four directors of MDES would be in jail. They simply ride the PERS train and are accountable to nobody. Next?

Anonymous said...

A link to the audit would be nice.


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