Summit County Executive Office Oriana House Contract Performance Audit General Report

Transcription

1 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt Prepared fr: Ilene Shapir Audit Cmmittee Apprved by Audit Cmmittee August 16, 2017 Summit Cunty Internal Audit Department 175 Suth Main Street Akrn, Ohi Lisa L. Skapura, Directr Meredith Merry, Assistant Directr Jn Keenan, Audit Supervisr Brittney Quinn, Senir Auditr Brandn Schmidt, Staff Auditr Mari Warren, Staff Auditr Vince Ruegsegger, Staff Auditr

2 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt Table f Cntents EXECUTIVE SUMMARY... 3 GENERAL BACKGROUND... 4 AUDIT OBJECTIVES, SCOPE, AND METHODOLOGY... 4 DETAILED COMMENTS... 5 Page 2 f 11

3 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt EXECUTIVE SUMMARY Ttal Number f Issues 7 Internal Cntrls Weaknesses in Internal Cntrls: Testing Sectin # Issues Issue Descriptins Page Ref. Bill Recnciliatin 1 Recnciliatin errrs 5 Incrrect billing rate Billing 2 6 Billing errrs Errr in calculating credit ppulatin Individual payments nt included in respective mnth s credit Credits 4 8 Insufficient review/apprval f fee scales SCRAM installatin credit nt received Page 3 f 11

4 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt GENERAL BACKGROUND The Cunty f Summit is respnsible fr determining the sentencing fr peple wh have cmmitted crimes r minr misdemeanrs within the Cunty. Individuals are sentenced t the applicable prgram determined by the Curt f Cmmn Pleas r the Summit Cunty Adult Prbatin Department. The Cunty f Summit des nt prvide any direct service, but cntracts with lcal agencies t prvide quality, affrdable services fr individuals in Summit Cunty fr the fllwing prgrams: Wrk Release Male Feln Wrk Release Male Misdemeanr Wrk Release Female Misdemeanr Wrk Release Female Feln Hme Incarceratin Withut Alchl -Testing Hme Incarceratin Mnitring with Radi Technlgy Radi Technlgy Installatins Hme Incarceratin Electrnic Mnitring Installatins Secure Cntinuus Remte Alchl Mnitring (SCRAM) Cntinuus Alchl Mnitring (CAM) Remte Breathalyzer Alchl Mnitring Secure Cntinuus Remte Alchl Mnitring (SCRAM) Remte Breath Installatins Active Glbal Psitining System (GPS) Passive Glbal Psitining System (GPS) Active - Passive Glbal Psitining System (GPS) Installatins Intermediate Glbal Psitining System (GPS) Intermediate Glbal Psitining System (GPS) Installatins Multiple Offender Prgram (MOP), Driving Under the Influence (DUI) and Misdemeanants Glenwd Jail Direct Cmmitments Summit Cunty Jail Overflws -Transfers Emplyment Placement Male Emplyment Placement Female Halfway Huse Male Halfway Huse Female Halfway Huse Feln Day Reprting Male Female Criminal Nnsupprt Driver Interventin Prgram (DIP) - 3 Day Driver Interventin Prgram (DIP) - 6 Day Intensive Outpatient Prgram (IOP) Pretrial Supervisin Minimum Pretrial Supervisin Medium Pretrial Supervisin Maximum The Cunty f Summit entered int a cntract nt t exceed $5,590,722,28 with the Oriana Huse n January 1 st, 2016 t assist in prviding these services. AUDIT OBJECTIVES, SCOPE, AND METHODOLOGY The primary fcus f this review was t prvide the Cunty f Summit with reasnable assurance, based n the testing perfrmed, n the adequacy f the system f management cntrl currently in effect fr the audit areas. Management cntrls include the prcesses fr planning, rganizing, directing, and cntrlling prgram peratins, including systems fr measuring, reprting, and mnitring perfrmance. Management is respnsible fr establishing and maintaining effective cntrls that, in general, include the plan f rganizatin, as well as methds and prcedures t ensure that gals are met. Specific audit bjectives include evaluating the plicies, prcedures, and internal cntrls related t the Cunty f Summit. We cnducted this perfrmance audit in accrdance with generally accepted gvernment auditing standards. Thse standards require that we plan and perfrm the audit t btain sufficient, apprpriate evidence t prvide a reasnable basis fr ur findings and cnclusins based n ur audit bjectives. We believe that the evidence btained prvides a reasnable basis fr ur findings and cnclusins based n ur audit bjectives. Page 4 f 11

5 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt Based n the results f ur review, we prepared specific issues and recmmendatins fr imprvement that were discussed with management. These recmmendatins, as well as management s unaltered written respnse, can be fund in the fllwing sectins f this reprt. Objectives: T determine if the Cunty f Summit was billed crrectly in accrdance with the cntractual terms fr the prvided prgrams. Scpe: An verview and evaluatin f the existing plicies, prcesses, prcedures, cntracts and internal cntrl structure utilized by Cunty f Summit frm July 1, 2016 thrugh December 31, The fllwing were the majr audit steps perfrmed: OBJECTIVE 1 CONTRACT COMPLIANCE 1. T determine if the Cunty f Summit was billed crrectly in accrdance with the cntractual terms fr the prvided prgrams. 2. Investigate discrepancies and summarize results. 3. Make recmmendatins where apprpriate. I. Cntract Cmpliance Testing DETAILED COMMENTS Cntract cmpliance testing was perfrmed in the fllwing areas: Bill Recnciliatin Billing Credits BILL RECONCILATION Mnthly Accunt Summaries (invices) were btained fr the perid 7/1/16 thrugh 12/31/16 and client prgram billing supprt reprts fr each prgram were btained. IAD recnciled t ttal billed fr each prgram n the mnthly accunting summaries t the client prgram billing summary reprts t ensure the amunt billed was prperly supprted. The fllwing issue was nted: 1. Issue: Upn recnciliatin f mnthly invices t supprting dcumentatin, IAD nted the fllwing: Page 5 f 11

6 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt Mnth Prgram Billing Units Billing Rate $ Amunt Over/(Under) Billed August SCRAM/CAM Mandays $12.58 ($427.72) August August August August SCRAM/Remte Breathalyzer Glenwd Jail Direct Cmmitments Summit Cunty Jail Overflws/Transfers Misdemeanr Halfway Huse Installatin $54.55 $ Mandays $48.40 ($96.80) Mandays $48.40 ($290.40) Mandays $77.23 ($77.23) August Day Reprting Mandays $16.93 ($118.51) September DIP 6 Day Client $ ($445.20) Octber Intermediate GPS Installatins Ttal Overbilled = $ Ttal Underbilled = ($1,528.10) Net Underbilled = ($1,364.45) Recmmendatin: Installatin $72.24 ($72.24) IAD recmmends that the Executive s Office btain supprting dcumentatin fr mnthly invices and recncile t ensure accurate billing (e.g., number f mandays, clients, etc.). Management Actin Plan: On a mnthly basis, beginning 9/1/2017 the Divisin f Public Safety under the Cunty Executive will review the detailed statements frm Oriana Huse. If the cntract changes the billing cycle, Public Safety will review in accrdance with the billing cycle. BILLING Accunting Summary Reprts were btained fr the perid 7/1/16 thrugh 12/31/16 and were fted and crss fted t ensure the invices were calculated crrectly. In additin, IAD reviewed the individual prgram fees and recnciled the fees charged n the Accunting Summary Reprts t the Oriana Huse Cntract t ensure the fees agreed t the cntractual terms. A sample f clients was selected frm each prgram fr the perid 7/1/16 thrugh 12/31/16 t ensure the services prvided were prperly supprted and inviced crrectly. Additinally, IAD reviewed and selected all cases that appeared t be billed tw r mre times in ne mnth t ensure duplicate billing did nt ccur. The fllwing general recmmendatin and issue were nted: Page 6 f 11

7 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt General Recmmendatin: Upn discussin, IAD nted that a ne-time payment f $73,000 was made t Oriana Huse t cver casewrker salaries due t the terminatin f a State grant. If this payment cntinues int future cntract perids, IAD recmmends that the payment terms be added t the annual cntract. This will help t ensure that all funding is prperly dcument in the cntract. 2. Issue: Upn detail testing f invices fr the perid 7/1/16 thrugh 12/31/16, IAD nted the fllwing discrepancies: $ Amunt Prgram Billing Units Billing Rate Over/(Under) Billed Hi mnitring w/ Radi Tech Mandays $14.44 $1, Radi Tech Installs Installatins $72.24 $ SCRAM Mandays $12.58 $25.16 SCRAM - RB Installs Installatins $54.55 $ Passive GPS Mandays $12.53 $12.53 Glenwd Jail Direct Cmmitments Mandays $48.40 $3, SCJ Overflws- Transfers Mandays $48.40 ($435.60) Halfway Huse Felny Mandays $77.23 $ Day Reprting Mandays $16.93 $1, Pretrial Supervisin Minimum Mandays $1.32 $40.92 Pretrial Supervisin Medium Mandays $2.64 $97.68 Pretrial Supervisin Maximum Mandays $5.02 $ Duplicate Billing Mandays/Installatins Varius $2, * See errr summary n Appendix A Ttal Overbilled = $10, Ttal Underbilled = ($435.60) Net Overbilled = $9, Recmmendatin: IAD recmmends that the Executive s Office peridically cnduct detailed reviews f mnthly invices fr services perfrmed by Oriana Huse. This will help t ensure accuracy f billed services. Management Actin Plan: On a mnthly basis, beginning 9/1/2017 the Divisin f Public Safety under the Cunty Executive will review the detailed statements frm Oriana Huse. If the cntract changes the billing cycle, Public Safety will review in accrdance with the billing cycle. 3. Issue: Upn recnciliatin f the fees charged n the mnthly invice selected fr testing t the executed cntract with Page 7 f 11

8 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt Oriana Huse, IAD nted that Summit Cunty s cntract with Oriana Huse was nt updated t include the charge fr the Remte Breathalyzer Alchl Mnitring. Recmmendatin: IAD recmmends that the payment terms fr all prgrams be added t the cntract. This will help t ensure all prgrams are prperly funded in accrdance with the cntract. Management Actin Plan: In renegtiating the agreement with Oriana Huse, prgram fees and payment terms will be clearly delineated. If prgrams are changed, added r deleted it will be memrialized by a written addendum t the agreement which is signed by bth parties. CREDITS Plicies and prcedures were reviewed and interviews were cnducted t gain an understanding f the prcess fr billing clients, cllecting fees, and applying subsequent credits n the invices. The agreement between the Cunty and Oriana Huse was reviewed t gain an understanding f the types f credits that were agreed-upn t be applied/received. A sample f clients was randmly selected frm each billing testing sample fr the perid 7/1/16 12/31/16, and detail testing was perfrmed t ensure mnies received (via client, Medicaid, etc.) were prperly credited t the Cunty fr the fllwing prgrams: Hme Incarceratin (HI)/SCRAM Wrk Release State Halfway Huse Treatment (Intensive Outpatient Prgram) Day Reprting Multiple Offender Prgram (MOP) Misdemeanants Glenwd Jail Direct Cmmitments Reduced Driver Interventin Prgram (DIP) (3/6 Day) Security & Fd (Glenwd Jail) The fllwing issues were nted: 4. Issue: Upn detail testing f the ppulatin f credits issued n the mnthly invices t Summit Cunty fr the perid 7/1/16 thrugh 12/31/16, IAD nted the fllwing discrepancies: Page 8 f 11

9 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt Ttal Over-credit = $ Ttal Under-credit = ($20,496.51) Net Under-credit = ($19,885.77) Recmmendatin: Prgram Credit $ Amunt Over/(Under) HI fees (013)/SCRAM fees (213) ($13,607.75) Wrk Release fees (021) ($3,699.73) State Halfway Huse - Treatment - Day Reprting fees (011) ($3,189.03) MOP Misdemeanants - Glenwd Jail Direct Cmmitments $500 Reduced DIP Prgram - 3 Day/6 day - Security & Fd GWJ $ IAD recmmends the Cunty peridically cnduct detailed reviews f mnthly invices, btaining supprting dcumentatin fr credits issued (e.g., credit wrksheets) t ensure all payments received fr services billed are crrectly included in the mnthly credit amunt. This will help t ensure accuracy f credits issued. Management Actin Plan: Prir t the issuance f payments t Oriana Huse (which are currently paid quarterly), the Divisin f Public Safety will btain credit wrksheets frm Oriana Huse and cmpare them t the bills t verify credit amunts. Discrepancies will be reslved with Oriana befre payment is issued. 5. Issue: Upn detail testing f State and Medicaid reimbursements and client payments fr services billed t Summit Cunty fr the perid 7/1/16 thrugh 12/31/16, IAD nted the fllwing discrepancies: Prgram Credit $ Amunt Over/(Under) HI fees (013)/SCRAM fees (213) ($270.00) Wrk Release fees (021) ($804.58) State Halfway Huse - Treatment ($1,981.76) Day Reprting fees (011) - MOP Misdemeanants - Glenwd Jail Direct Cmmitments - Reduced DIP Prgram - 3 Day/6 day - Security & Fd GWJ ($935.61) * See errr summary n Appendix B Page 9 f 11

10 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt Ttal Over-credit = $0 Ttal Under-credit = ($3,991.95) Net Under-credit = ($3,991.95) Recmmendatin: IAD recmmends the Cunty peridically cnduct detailed reviews f mnthly invices, btaining payments received n behalf f clients billed (via client payments, Medicaid reimbursements, and/r State reimbursements) and cmpare t credit ppulatin ttals t ensure respective payments/reimbursements are crrectly included in the mnthly credit amunt. This will help t ensure accuracy f credits issued. Management Actin Plan: Prir t the issuance f payments t Oriana Huse (which are currently paid quarterly), the Divisin f Public Safety will btain dcumentatin frm Oriana Huse regarding third party payments (e.g., Medicaid r ther state reimbursements) and cmpare them t the bills t verify credit amunts. Discrepancies will be reslved with Oriana befre payment is issued. 6. Issue: Upn review f the agreement between the Cunty and Oriana Huse, Oriana Huse is t cllect payments frm participants in the Wrk Release, Hme Incarceratin, Chemical Dependency Treatment, Rehabilitatin and Supprtive Services, and Day Reprting prgrams, based n a fee scale apprved by the Cunty; hwever, upn discussin with Oriana Huse and Cunty persnnel, the fee scale(s) utilized were nt apprved, t either f their knwledge. Recmmendatin: IAD recmmends the fee scales be incrprated int the agreement between the Cunty and Oriana Huse, and apprved by the apprpriate Cunty persnnel prir t executin f the agreement. This will help t ensure apprval f fees charged/cllected by Oriana Huse and cmpliance with cntract terms. Management Actin Plan: The scale f fees charged t clients fr Wrk Release, Hme Incarceratin, Chemical Dependency Treatment, Rehabilitatin and Supprtive Services, and Day Reprting prgrams will be apprved in advance f cntract signing and will be incrprated int the agreement. Thereafter, if the fees are changed it will be memrialized in an addendum t the agreement signed by bth parties. Public Safety will then review statements and if bth the Cunty and a client have paid the fee fr these prgrams, we will ensure that the Cunty gets reimbursed the fee it paid. 7. Issue: Upn discussin with Oriana persnnel, IAD nted SCRAM installatin fees were being billed t the Cunty as well as cllected frm the client, with n credit issued. Hwever, upn review f the agreement between Oriana Huse and the Cunty, Oriana Huse will cllect and credit all fees frm participants in the SCRAM prgram and credit t Summit Cunty n a mnthly basis. In additin, credits fr fifty-six (56) SCRAM installatins, at a rate f $75 per installatin, were nted during the audit scpe fr a ttal f $4,200 that shuld have been credited t Summit Cunty. Page 10 f 11

11 Summit Cunty Executive Office Oriana Huse Cntract Perfrmance Audit General Reprt Recmmendatin: IAD recmmends that supprting dcumentatin be reviewed fr all credits in rder t determine that fees fr all services billed are credited back t the Cunty, in accrdance with cntract terms. This will help t ensure credit is received fr all services billed. Management Actin Plan: Prir t the issuance f payments t Oriana Huse (which are currently paid quarterly), the Divisin f Public Safety will btain credit wrksheets frm Oriana Huse and cmpare them t the bills t verify credit amunts, including specific review f clients in the prgrams nted abve. Discrepancies will be reslved with Oriana befre payment is issued. Page 11 f 11