By Jamey Dunn
A legislative commission that reviews state audits voted today to activate its subpoena power to look into Gov. Pat Quinn’s troubled anti-violence program.
A scathing audit from Auditor General William Holland thrust the Neighborhood Recovery Initiative (NRI) into the spotlight earlier this year. According to the report, the program did not use a competitive bidding process to select the providers and dole out grants but instead relied on recommendations from Chicago aldermen. Auditors found that at least $2 million was unaccounted for and necessary documentation was missing, including timecards for workers.
Since the audit, the U.S. attorney's office and the Cook County prosecutor's office have both begun investigating to program. Republicans have accused the governor of using the $54 million program as a “political slush fund.” The bulk of the money for the program came from discretionary spending Quinn is allowed under the state budget. Contracts for the program were signed shortly before Quinn narrowly won the 2010 race for governor, and some of the funding began to go out shortly after Election Day.
Quinn says that he shut the NRI down as soon as he became aware that it had problems. “When it wasn’t going in the right direction, when it wasn’t doing what we wanted it to do, I shut it down completely and stopped it cold,” Quinn said today. “I didn’t sweep anything under the rug. I acted on behalf of the public and shut the program down.” Quinn is also advocating for the passage of House Bill 3820, which would require more oversight for state grants. The House passed the bill last month. “I’m ready to sign it into law. I think that that certainly is something that is an important mission.”
Sen. Jason Barickman, a Bloomington Republican, brought a motion to the Legislative Audit Commission today that would allow the bipartisan panel to subpoena witnesses or information pertaining to the NRI. The commission, which is made up of members of both chambers, reviews audits, holds public hearings with state agency heads and sometimes recommends changes to the law as a result of audit findings. “Given what we know today about this program, given the many questions that many of us have about this program, the statute makes clear that we need to further investigate, find out what facts exist and make our recommendations accordingly,” said Barickman. “It’s clear that we have more work to do to get to the bottom of this.”
The proposal received bipartisan support; however, several Democrats on the commission voiced concerns that a probe from the commission would at best produce nothing beyond what will come out during the ongoing criminal investigations and would at worst impede them. “What’s the value at the end of the day that we’ll be putting on the table?” asked Hoffman Estates Democratic Rep. Fred Crespo, who sponsors HB 3820. “What can we do that they cannot do?” Crespo and others said that the commission does not have the resources to launch a major investigation.
Barickman, who chairs the committee, and co-chair Rep. Frank Mautino, a Democrat from Spring Valley, would both have to sign off on any subpoenas issued. Mautino was the sole vote against the motion. He argued that the information the committee needs is already available and that subpoenas may be unecessary. He noted that Holland’s office has several boxes of documents related to the audit and that no legislative staffers have gone through them at this point. Mautino said that the panel should first ask for the information and witnesses it is seeking instead of resorting to subpoena powers.
Holland said he would provide the commission with any information they want. “You don’t have to subpoena the records, and you don’t have to FOIA the records. You make an appointment, you come in and you take a look. That’s the way we do business,” He said. Holland also said that state agencies are required by law to comply.
Barickman said that because the agency that oversaw the program has been dissolved and some of the people who worked on the NRI have since left state government, the commission may need the legal power to compel them to cooperate.
Barickman said that today’s action would give the committee “every tool available” to look into the issue in the coming months. “We’re not scheduled to meet [again] until late August or September of 2014. So this gives us all of the tools necessary to continue with our duties over the summer.” If the commission decides to bring forward any revelations about the NRI at that next hearing, it would be pretty inopportune political timing for Quinn’s reelection bid.
Quinn called Brickman’s motion politically motivated. “Politcs as usual. It’s a political time of year. We shut the program down. That’s the bottom line. We did it two years ago.”
Barickman said Quinn has been trying to “rewrite the facts” in recent media appearances. He said that the commission’s vote today “demonstrated wholeheartedly” that “this absolutely is not a partisan issue.” But whether the power will actually come into play is yet to be seen. Mautino would have to agree to subpoenas and an equally balanced bipartisan subcommittee would then have to draft them and approve them by a majority vote. Democrats on the commission went along with today’s vote, for the most part, but they may not be as accommodating when and if the subpoenas begin to fly.
Showing posts with label Audits. Show all posts
Showing posts with label Audits. Show all posts
Tuesday, May 06, 2014
Tuesday, February 25, 2014
Anti-violence program promoted by Quinn mismanaged funds, audit finds
By Jamey Dunn
Republicans are calling for an investigation of Gov. Pat Quinn’s administration after an audit released today found mismanagement in an anti-violence program backed by the governor.
In the summer of 2010, Quinn announced $50 million in funding for the Neighborhood Recovery Initiative, a violence prevention program. The initiative received nearly $55 million from October 2010 to October 2012. The bulk, nearly $45 million, came from Quinn’s discretionary funds and was not directly approved by the General Assembly. Lawmakers approved about $10 million for the initiative as part of the Fiscal Year 2012 budget.
The Neighborhood Recovery Initiative has been the target of scrutiny for a few years now. A 2012 report from CNN called into question some of the program’s spending, including paying youth to hand out fliers, attend yoga classes and march in a parade with Quinn. Later that year, lawmakers approved a resolution calling for an audit of the program.
That review, conducted by the office of Illinois Auditor General William Holland, was released today. The report describes the program as “hastily implemented” and says that the Illinois Violence Prevention Authority (IVPA), which oversaw the program, failed to properly document how money was spent. The funding for the program increased from $20 million to $50 million in less than two months.
Republicans are asking that the executive inspector general’s office to launch an investigation into the program. “This is the kind of information that indictments are made out of,” said Dixon Republican Sen. Tim Bivins. “Obviously there’s got to be an investigation. Everyone’s innocent until proven guilty.” He added, “I think there’s more than enough probable cause ... for an investigation to occur.”
The audit found that the IVPA did not use a competitive bidding process to select the providers that administered the services under the program, instead relying on recommendations from Chicago aldermen. The agency also did not have documentation on how it selected the communities that would receive funding. “The communities selected for NRI were not all the most violent in terms of crime in the Chicago area. Our comparison of NRI communities to the violent crime totals published by the Chicago police found seven Chicago neighborhoods that were among the 20 most violent neighborhoods that did not receive NRI funding. In Year 3 of NRI, another Chicago community, Hermosa, was added to the NRI program. This community ranked 48th in violent crime from 2005 [to] 2010,” the audit said.
The audit looked at 23 providers that participated in the program. Auditors found that 40 percent of the contracts with community providers in the program were approved after the contract work timeline was already completed. Providers were allowed to work on the program before they entered into a contract with the state, and 33 contracts either had no end date or were never approved. Only 30 percent of audited providers kept time sheets for staff paid with funding from the initiative. Holland found documentation indicating that some workers were paid for more time than they worked. More than 60 percent of providers' quarterly reports were late. Some agencies revised quarterly reports more than a year after they were due. Of the 23 providers, two closed, and the IVPA did not recoup unspent program founds. The audit found documentation indicating that $2 million in unspent funds from the initiative were never recovered.
Republicans point to the timing of the spending and accuse Quinn of using the program as a slush fund to try to build community support before the 2010 general election. Quinn narrowly defeated Republican Sen. Bill Brady in 2010 to hang onto his office. Brady is running for governor again “This is a very troubling report about a program launched by Governor Quinn just weeks before the 2010 election with little planning from what certainly appears to be a taxpayer-paid political slush fund,” Brady said in a prepared statement.
Quinn’s office brushed off the accusations. “These issues were resolved more than a year ago,” said a statement from Quinn’s office. “When the governor’s office became aware of the issues with IVPA in 2012, the administration acted quickly and, working with Attorney General [Lisa Madigan’s] Office and the General Assembly, passed legislation to have [the Illinois Criminal Justice Information Authority] take over the authority. The ICJIA has taken major steps to ensure responsible management of this critical violence prevention program and this issue has since been resolved. We are committed to providing effective work and educational opportunities for our youth to help prevent violence in communities across Illinois.”
The revamped version of the program, now called the Community Violence Prevention Program, is currently operating on an annual budget of about $17 million. The program serves 24 communities and plans to branch out to 33 next year. According to the Illinois Criminal Justice Information Authority, last year it administered job training to about 1,800 youth and placed young people in jobs, such as office and retail positions. The state pays the participants’ salaries in these summer jobs. Those in the program also participate in community service and receive mentoring. The program almost provided reentry services to nearly 450 young people who were returning to society after doing time in the state’s corrections system. “We’re excited about our program, and we’re going to continue to provide the effective work program that we’ve designed and continue to offer these opportunities for youth to help prevent violence in communities across Illinois,” said Cristin Evans, spokeswoman for the Illinois Criminal Justice Information Authority.
Republicans say a reworking of the initiative is not enough. They say they want answers about the years in which money was misspent. “Every once in a while, the truth comes out of this town, and I would hope that people have the courage to look at it and see what it shows,” said Palatine Republican Sen. Matt Murphy.
Republicans are calling for an investigation of Gov. Pat Quinn’s administration after an audit released today found mismanagement in an anti-violence program backed by the governor.
In the summer of 2010, Quinn announced $50 million in funding for the Neighborhood Recovery Initiative, a violence prevention program. The initiative received nearly $55 million from October 2010 to October 2012. The bulk, nearly $45 million, came from Quinn’s discretionary funds and was not directly approved by the General Assembly. Lawmakers approved about $10 million for the initiative as part of the Fiscal Year 2012 budget.
The Neighborhood Recovery Initiative has been the target of scrutiny for a few years now. A 2012 report from CNN called into question some of the program’s spending, including paying youth to hand out fliers, attend yoga classes and march in a parade with Quinn. Later that year, lawmakers approved a resolution calling for an audit of the program.
That review, conducted by the office of Illinois Auditor General William Holland, was released today. The report describes the program as “hastily implemented” and says that the Illinois Violence Prevention Authority (IVPA), which oversaw the program, failed to properly document how money was spent. The funding for the program increased from $20 million to $50 million in less than two months.
Republicans are asking that the executive inspector general’s office to launch an investigation into the program. “This is the kind of information that indictments are made out of,” said Dixon Republican Sen. Tim Bivins. “Obviously there’s got to be an investigation. Everyone’s innocent until proven guilty.” He added, “I think there’s more than enough probable cause ... for an investigation to occur.”
The audit found that the IVPA did not use a competitive bidding process to select the providers that administered the services under the program, instead relying on recommendations from Chicago aldermen. The agency also did not have documentation on how it selected the communities that would receive funding. “The communities selected for NRI were not all the most violent in terms of crime in the Chicago area. Our comparison of NRI communities to the violent crime totals published by the Chicago police found seven Chicago neighborhoods that were among the 20 most violent neighborhoods that did not receive NRI funding. In Year 3 of NRI, another Chicago community, Hermosa, was added to the NRI program. This community ranked 48th in violent crime from 2005 [to] 2010,” the audit said.
The audit looked at 23 providers that participated in the program. Auditors found that 40 percent of the contracts with community providers in the program were approved after the contract work timeline was already completed. Providers were allowed to work on the program before they entered into a contract with the state, and 33 contracts either had no end date or were never approved. Only 30 percent of audited providers kept time sheets for staff paid with funding from the initiative. Holland found documentation indicating that some workers were paid for more time than they worked. More than 60 percent of providers' quarterly reports were late. Some agencies revised quarterly reports more than a year after they were due. Of the 23 providers, two closed, and the IVPA did not recoup unspent program founds. The audit found documentation indicating that $2 million in unspent funds from the initiative were never recovered.
Republicans point to the timing of the spending and accuse Quinn of using the program as a slush fund to try to build community support before the 2010 general election. Quinn narrowly defeated Republican Sen. Bill Brady in 2010 to hang onto his office. Brady is running for governor again “This is a very troubling report about a program launched by Governor Quinn just weeks before the 2010 election with little planning from what certainly appears to be a taxpayer-paid political slush fund,” Brady said in a prepared statement.
Quinn’s office brushed off the accusations. “These issues were resolved more than a year ago,” said a statement from Quinn’s office. “When the governor’s office became aware of the issues with IVPA in 2012, the administration acted quickly and, working with Attorney General [Lisa Madigan’s] Office and the General Assembly, passed legislation to have [the Illinois Criminal Justice Information Authority] take over the authority. The ICJIA has taken major steps to ensure responsible management of this critical violence prevention program and this issue has since been resolved. We are committed to providing effective work and educational opportunities for our youth to help prevent violence in communities across Illinois.”
The revamped version of the program, now called the Community Violence Prevention Program, is currently operating on an annual budget of about $17 million. The program serves 24 communities and plans to branch out to 33 next year. According to the Illinois Criminal Justice Information Authority, last year it administered job training to about 1,800 youth and placed young people in jobs, such as office and retail positions. The state pays the participants’ salaries in these summer jobs. Those in the program also participate in community service and receive mentoring. The program almost provided reentry services to nearly 450 young people who were returning to society after doing time in the state’s corrections system. “We’re excited about our program, and we’re going to continue to provide the effective work program that we’ve designed and continue to offer these opportunities for youth to help prevent violence in communities across Illinois,” said Cristin Evans, spokeswoman for the Illinois Criminal Justice Information Authority.
Republicans say a reworking of the initiative is not enough. They say they want answers about the years in which money was misspent. “Every once in a while, the truth comes out of this town, and I would hope that people have the courage to look at it and see what it shows,” said Palatine Republican Sen. Matt Murphy.
Wednesday, June 29, 2011
Audit: DCFS falls short on response times but shows improvement
By Jamey Dunn
A recent audit found that investigations of reported child abuse and reviews of death cases by the Illinois Department of Child and Family Services are not living up to state law, although the agency has made improvements in recent years.
Child Death Review Teams that fall under the department’s purview face a backlog of cases, Illinois Auditor General Bill Holland's office found. The teams are required to review the deaths of children who were wards of DCFS, subjects of open cases, subjects of abuse or neglect investigations in the year before their deaths, and children whose deaths are reported to the department as the result of abuse or neglect. Those reviews come after DCFS has conducted an initial investigation, and they are geared toward preventing future fatalities.
The teams were assigned 161 mandated cases in Fiscal Year 2009 and 164 mandated cases in FY 2010. The teams can also take on cases at their discretion. Teams are required to complete their reviews within 90 days after a DCFS investigation or, if there is no investigation, 90 days after they receive the necessary information. For FY 2010, the department did not complete 70 out of 95 death reviews within 90 days of the DCFS investigation. For cases that DCFS did not investigate, the teams fell short of the 90-day deadline on 51 out of 63 cases. According to DCFS documentation, six deaths from FY 2010 had not been reviewed at the time of the audit.
Kendall Marlowe, spokesperson for DCFS, said part of the holdup is the amount of time it takes county governments to send the death certificates to teams “because we live in a state with 102 counties, and those counties have different resources and different processes.” DCFS has set the goal of having all FY 2010 cases reviewed by July 30.
Besides working to help determine the cause of deaths, the team also makes recommendations for ways to prevent child deaths. Marlowe points to the example of childhood drowning, which is the leading cause for accidental death for children and the second leading cause of accidental death among teenagers. The panels made recommendations that led to May becoming childhood drowning prevention month in the state and a time when DCFS works to educate children and parents.
Auditors said the teams’ inability to meet requirements makes them less effective at such prevention efforts.
The department is also required to begin investigating all potential cases of abuse or neglect within 24 hours of a report. In FY 2010, the department did not begin an investigation within the required time frame for 97 of 67, 377 reports. This number is down from its highest point in the decade, which was 517 cases out of 59,241 in FY 2002. However it has increased from the lowest point in the decade, which was last year, when the department failed to start investigating 83 reports within 24 hours out of 68,732 total reports.
“Failure to respond to a report of abuse or neglect within 24 hours could result in further endangerment to the child and is a violation of the [ Abused and Neglected Child Reporting Act,]” the audit said. However auditors noted that the department has shown continual improvement when it comes to responding to reports.
While the department has not reached the 100 percent compliance required by law, Marlowe said great strides have been made in recent years to ensure that it is responding appropriately to reports of abuse. “Reports that come in do not fit any pattern … so it will always be struggle to get to 100 percent compliance.” He noted that reports of abuse are prioritized base on the potential danger to children. “On the more serious cases, we do not hesitate at all. … An investigator is heading out immediately.”
Auditors spot-checked 57 foster care and family case files. Of those files, 37 were missing checklists for initial child placement as well as for long term planning. Ten were missing medical and dental consent forms, seven were missing pictures of children and 13 were missing children’s’ fingerprints. Administrators had failed to review five of the cases.
Auditors noted that DCFS needs more bilingual staff to comply with law and a court order. DCFS is required to have 194 bilingual front line staff members but only had 148 as of March 2010. Marlowe said budget constraints are a factor but the state’s growing Hispanic population has also put bilingual social workers in high demand.
“Spanish speaking populations are growing in parts of the state where they have not before,” Marlowe said. “It’s not a challenge that we will achieve in the very near future. … It has more to do with supply and demand in the social services work force.”
While auditors found 13 problem areas at the agency, the number is down from 15 in the previous audit, and auditors did cite progress in a number of areas. Marlow said federal requirements have pushed DCFS to track its performance on a regular basis. “This is an agency that over the last 10 years has become performance-driven. We measure and analyze our own performance on a continual basis and are not satisfied until we are serving every child and family in the most effective way possible.”
A recent audit found that investigations of reported child abuse and reviews of death cases by the Illinois Department of Child and Family Services are not living up to state law, although the agency has made improvements in recent years.
Child Death Review Teams that fall under the department’s purview face a backlog of cases, Illinois Auditor General Bill Holland's office found. The teams are required to review the deaths of children who were wards of DCFS, subjects of open cases, subjects of abuse or neglect investigations in the year before their deaths, and children whose deaths are reported to the department as the result of abuse or neglect. Those reviews come after DCFS has conducted an initial investigation, and they are geared toward preventing future fatalities.
The teams were assigned 161 mandated cases in Fiscal Year 2009 and 164 mandated cases in FY 2010. The teams can also take on cases at their discretion. Teams are required to complete their reviews within 90 days after a DCFS investigation or, if there is no investigation, 90 days after they receive the necessary information. For FY 2010, the department did not complete 70 out of 95 death reviews within 90 days of the DCFS investigation. For cases that DCFS did not investigate, the teams fell short of the 90-day deadline on 51 out of 63 cases. According to DCFS documentation, six deaths from FY 2010 had not been reviewed at the time of the audit.
Kendall Marlowe, spokesperson for DCFS, said part of the holdup is the amount of time it takes county governments to send the death certificates to teams “because we live in a state with 102 counties, and those counties have different resources and different processes.” DCFS has set the goal of having all FY 2010 cases reviewed by July 30.
Besides working to help determine the cause of deaths, the team also makes recommendations for ways to prevent child deaths. Marlowe points to the example of childhood drowning, which is the leading cause for accidental death for children and the second leading cause of accidental death among teenagers. The panels made recommendations that led to May becoming childhood drowning prevention month in the state and a time when DCFS works to educate children and parents.
Auditors said the teams’ inability to meet requirements makes them less effective at such prevention efforts.
The department is also required to begin investigating all potential cases of abuse or neglect within 24 hours of a report. In FY 2010, the department did not begin an investigation within the required time frame for 97 of 67, 377 reports. This number is down from its highest point in the decade, which was 517 cases out of 59,241 in FY 2002. However it has increased from the lowest point in the decade, which was last year, when the department failed to start investigating 83 reports within 24 hours out of 68,732 total reports.
“Failure to respond to a report of abuse or neglect within 24 hours could result in further endangerment to the child and is a violation of the [ Abused and Neglected Child Reporting Act,]” the audit said. However auditors noted that the department has shown continual improvement when it comes to responding to reports.
While the department has not reached the 100 percent compliance required by law, Marlowe said great strides have been made in recent years to ensure that it is responding appropriately to reports of abuse. “Reports that come in do not fit any pattern … so it will always be struggle to get to 100 percent compliance.” He noted that reports of abuse are prioritized base on the potential danger to children. “On the more serious cases, we do not hesitate at all. … An investigator is heading out immediately.”
Auditors spot-checked 57 foster care and family case files. Of those files, 37 were missing checklists for initial child placement as well as for long term planning. Ten were missing medical and dental consent forms, seven were missing pictures of children and 13 were missing children’s’ fingerprints. Administrators had failed to review five of the cases.
Auditors noted that DCFS needs more bilingual staff to comply with law and a court order. DCFS is required to have 194 bilingual front line staff members but only had 148 as of March 2010. Marlowe said budget constraints are a factor but the state’s growing Hispanic population has also put bilingual social workers in high demand.
“Spanish speaking populations are growing in parts of the state where they have not before,” Marlowe said. “It’s not a challenge that we will achieve in the very near future. … It has more to do with supply and demand in the social services work force.”
While auditors found 13 problem areas at the agency, the number is down from 15 in the previous audit, and auditors did cite progress in a number of areas. Marlow said federal requirements have pushed DCFS to track its performance on a regular basis. “This is an agency that over the last 10 years has become performance-driven. We measure and analyze our own performance on a continual basis and are not satisfied until we are serving every child and family in the most effective way possible.”
Friday, August 07, 2009
Overtime costs corrections
By Bethany Jaeger
Gov. Pat Quinn plans to lay off as many as 1,000 prison workers at the same time a lengthy state audit reveals that overtime costs within the Illinois Department of Corrections increased from $19.2 million to $37 million two years ago because of staffing shortages.
The review by Illinois Auditor General Bill Holland’s office only pertains to fiscal years 2007 and 2008, when the corrections department was managed by a former director and under the administration of a former governor. Former director Roger Walker was appointed by then-Gov. Rod Blagojevich. Walker was replaced in June by Gov. Pat Quinn’s appointee, Michael Randle.
Holland said the deficiencies, including everything from spending more than authorized by the General Assembly to failing to spend money earmarked for hiring new frontline staff, does not paint a “pretty picture.”
“This goes to the heart of the failure of the management of the department,” he said, adding that because there have not been dramatic changes in the management since the two years in the audit, the foundation going forward is weak. “I think the new director has got some real soul searching to do with his management team.”
One problem cited in the audit was that the department violated the legislature’s intent by not spending extra money dedicated to hire new frontline staff. The General Assembly authorized spending $11.7 million to hire 231 new staff in fiscal year 2007, but only 154 new staff were hired. The next year, the legislature allotted $12 million to hire 500 new employees, but only six were reported as being hired. Instead, according to the audit, the department used the money to pay for existing staff, which also included more expensive overtime costs.
At the same time, the department reported that it lost 324 employees in fiscal year 2007 and 455 employees in fiscal year ’08.
The audit also states that mandatory overtime costs from inadequate staffing levels cost more money — overtime costs increased from $19.2 million in FY07 to more than $37 million the following year. The audit identified 126 employees working at various correctional centers that had worked so many extra hours during FY08 that they earned more $100,000, when their normal salary rates ranged from $40,000 to $75,000 a year. At Stateville Correctional Center, alone, overtime costs topped $13.7 million in FY08.
Anders Lindall, spokesman for the American Federation of State, County and Municipal Employees, which represents many prison workers, said the most recent tab for understaffing at all Illinois prisons was more than $60 million in fiscal year 2009, which just ended June 30. “That’s a five-fold increase over just a few years ago,” he said.
“On its face it may seem counter intuitive,” Lindall added, “but it’s simple math that hiring new staff at the lowest end of the salary scale and paying them straight time is far cheaper than paying time and a half to more senior employees.”
According to the audit, the Blagojevich administration ordered the department not to hire new front line staff in fiscal year ’08.
“There were clearly directions from the Blagojevich administration that certainly did not help the day-to-day operations of the department,” Holland said. However, he added, 19 of the findings were repeated from the last two-year audit. And 28 new findings were added.
“These were not immaterial findings,” Holland continued. “These were findings of great significance that related from the top to the bottom of financial management of the Department of Corrections. And clearly it demonstrated that there was a failure on the part of the management of the Illinois Department of Corrections.”
Januari Smith, spokeswoman for the corrections department, said in an e-mail that the department already is looking to reduce overtime costs while also preparing for potential layoffs planned by Quinn. “A cadet class graduated from the academy last week and will be on the job soon. As well, another cadet class will begin in mid-August. Those staff affected by layoffs may be eligible for vacancies at other facilities across the state.”
Smith added that other corrective action is challenged by current budget constraints. “IDOC has limited resources and is working with antiquated systems. It’s a challenge to keep up with increasing requirements and a decreasing staff.”
Gov. Pat Quinn plans to lay off as many as 1,000 prison workers at the same time a lengthy state audit reveals that overtime costs within the Illinois Department of Corrections increased from $19.2 million to $37 million two years ago because of staffing shortages.
The review by Illinois Auditor General Bill Holland’s office only pertains to fiscal years 2007 and 2008, when the corrections department was managed by a former director and under the administration of a former governor. Former director Roger Walker was appointed by then-Gov. Rod Blagojevich. Walker was replaced in June by Gov. Pat Quinn’s appointee, Michael Randle.
Holland said the deficiencies, including everything from spending more than authorized by the General Assembly to failing to spend money earmarked for hiring new frontline staff, does not paint a “pretty picture.”
“This goes to the heart of the failure of the management of the department,” he said, adding that because there have not been dramatic changes in the management since the two years in the audit, the foundation going forward is weak. “I think the new director has got some real soul searching to do with his management team.”
One problem cited in the audit was that the department violated the legislature’s intent by not spending extra money dedicated to hire new frontline staff. The General Assembly authorized spending $11.7 million to hire 231 new staff in fiscal year 2007, but only 154 new staff were hired. The next year, the legislature allotted $12 million to hire 500 new employees, but only six were reported as being hired. Instead, according to the audit, the department used the money to pay for existing staff, which also included more expensive overtime costs.
At the same time, the department reported that it lost 324 employees in fiscal year 2007 and 455 employees in fiscal year ’08.
The audit also states that mandatory overtime costs from inadequate staffing levels cost more money — overtime costs increased from $19.2 million in FY07 to more than $37 million the following year. The audit identified 126 employees working at various correctional centers that had worked so many extra hours during FY08 that they earned more $100,000, when their normal salary rates ranged from $40,000 to $75,000 a year. At Stateville Correctional Center, alone, overtime costs topped $13.7 million in FY08.
Anders Lindall, spokesman for the American Federation of State, County and Municipal Employees, which represents many prison workers, said the most recent tab for understaffing at all Illinois prisons was more than $60 million in fiscal year 2009, which just ended June 30. “That’s a five-fold increase over just a few years ago,” he said.
“On its face it may seem counter intuitive,” Lindall added, “but it’s simple math that hiring new staff at the lowest end of the salary scale and paying them straight time is far cheaper than paying time and a half to more senior employees.”
According to the audit, the Blagojevich administration ordered the department not to hire new front line staff in fiscal year ’08.
“There were clearly directions from the Blagojevich administration that certainly did not help the day-to-day operations of the department,” Holland said. However, he added, 19 of the findings were repeated from the last two-year audit. And 28 new findings were added.
“These were not immaterial findings,” Holland continued. “These were findings of great significance that related from the top to the bottom of financial management of the Department of Corrections. And clearly it demonstrated that there was a failure on the part of the management of the Illinois Department of Corrections.”
Januari Smith, spokeswoman for the corrections department, said in an e-mail that the department already is looking to reduce overtime costs while also preparing for potential layoffs planned by Quinn. “A cadet class graduated from the academy last week and will be on the job soon. As well, another cadet class will begin in mid-August. Those staff affected by layoffs may be eligible for vacancies at other facilities across the state.”
Smith added that other corrective action is challenged by current budget constraints. “IDOC has limited resources and is working with antiquated systems. It’s a challenge to keep up with increasing requirements and a decreasing staff.”
Thursday, December 18, 2008
Impeachment: Day 3
The evidence gathered during the third day of the Illinois House’s impeachment investigation will play a role in committee members’ decisions about whether to recommend impeachment of Gov. Rod Blagojevich. Yet the answers committee members could not get from witnesses today is likely to be just as important, if not more, in determining whether the governor is fulfilling his constitutional duties.
Questions floated during today’s nearly seven-hour hearing focused on three things:
Ultimately, the committee is looking for a pattern of behavior. Today’s testimony offered information that dated back to 2003, the first year Blagojevich took office.
“For those of us who have been around the building for the last six or seven years, some of it’s old news,” said Steve Brown, spokesman for House Speaker Michael Madigan, who is presiding over the impeachment investigation. “But in the context of a pattern of abuse of power, abuse of law, abuse of the appropriations process, I think it all shows a real pattern of behavior.”
The known work of the committee is done, Brown said. But it’s unknown yet whether the U.S. attorney’s office will give the OK to invite testimony from people involved in the ongoing criminal investigation(s), mainly Ali Ata and Joseph Cari (see the Day 1 blog). The committee went home for the weekend but will return to the state Capitol at noon Monday. Rep. Barbara Flynn Currie, committee chair, told members to be prepared for two days of work, but the specific agenda is unknown.
Here are some highlights of information gathered from today’s hearing:
Administrative authority (JCAR)
Committee members could not get straight answers about who ultimately made the decision to expand the state-sponsored health insurance program despite rejections the Joint Committee on Administrative Rules. Simply called JCAR, the bipartisan legislative panel reviews administrative rules to make sure they stay true to the legislative intent. Read lots of background information about the expansion of FamilyCare in previous blogs.
A group of businessmen filed a lawsuit against the governor, claiming that he expanded a state-sponsored health care program to middle-income families without legislative approval and without specific spending authority to pay for it.
Director Barry Maram pointed out that court rulings have not specifically addressed whether the Department of Healthcare and Family Services had authority to expand the program. Court decisions so far have only determined that the eligibility criteria used for the FamilyCare expansion don’t abide by federal employment rules (see more here).
Fun fact: Since JCAR was created 31 years ago, nearly half of the rules it has suspended or prohibited have happened during the past six years of the Blagojevich administration, according to Vicki Thomas, executive director of JCAR.
The governor’s office has said JCAR is just an advisory body. Thomas said if the state didn’t have a JCAR, it would lead to “abuse of power and serious problems of separation of powers because then you would have the administration making law.”
Audits
Auditor General Bill Holland cited a June 2005 audit that documented significant problems in the agency where the governor consolidated many of the state’s important functions, Central Management Services. So-called efficiency initiatives turned out to be not so efficient, costing state agencies more money than they saved, Holland said. But the agency’s contracting practices were even more problematic. Many times, members of the governor’s staff played key roles in selecting the companies that would receive the state contract, which is unusual, he said. In one instance, a state contract was granted to an agency that did not yet exist.
Holland said routine requests for such information as contracts and travel vouchers also have been problematic. “Every year those are questions we’re going to ask … but when we ask for information and it is now being routinely given to legal staff, that is not making it any easier. It is making it more complex,” he said.
Holland also repeated the scenario in which he said the governor illegally tried to import doses of flu vaccine after initial scare of a shortage, but the U.S. government never approved the European vaccine. It eventually was meant to ship to Pakistan, but it didn’t get used there, either, because it expired.
Freedom of Information
The administration had shown “disregard” and “contempt” of the law on rather routine requests for public documents under the state’s Freedom of Information Act, said Jay Stewart, executive director of the Chicago-based Better Government Association. He said the administration repeatedly denied his requests, which isn’t that unusual. But what is unusual is that officials couldn’t confirm whether they had the information requested, and if they did have the information, they wouldn’t provide it. Stewart said it was the first “hypothetical denial” he’s ever received. The association has been trying to get access to federal grand jury subpoenas served upon the administration.
Questions floated during today’s nearly seven-hour hearing focused on three things:
- Has the governor exceeded his authority, and is he directly responsible for the expansion of a state health care program without legislative approval?
- Do particular state audits of his administration document a habitual ignorance or flat-out disregard for state and federal laws?
- Has his administration unnecessarily and inappropriately withheld information from the public?
Ultimately, the committee is looking for a pattern of behavior. Today’s testimony offered information that dated back to 2003, the first year Blagojevich took office.
“For those of us who have been around the building for the last six or seven years, some of it’s old news,” said Steve Brown, spokesman for House Speaker Michael Madigan, who is presiding over the impeachment investigation. “But in the context of a pattern of abuse of power, abuse of law, abuse of the appropriations process, I think it all shows a real pattern of behavior.”
The known work of the committee is done, Brown said. But it’s unknown yet whether the U.S. attorney’s office will give the OK to invite testimony from people involved in the ongoing criminal investigation(s), mainly Ali Ata and Joseph Cari (see the Day 1 blog). The committee went home for the weekend but will return to the state Capitol at noon Monday. Rep. Barbara Flynn Currie, committee chair, told members to be prepared for two days of work, but the specific agenda is unknown.
Here are some highlights of information gathered from today’s hearing:
Administrative authority (JCAR)
Committee members could not get straight answers about who ultimately made the decision to expand the state-sponsored health insurance program despite rejections the Joint Committee on Administrative Rules. Simply called JCAR, the bipartisan legislative panel reviews administrative rules to make sure they stay true to the legislative intent. Read lots of background information about the expansion of FamilyCare in previous blogs.
A group of businessmen filed a lawsuit against the governor, claiming that he expanded a state-sponsored health care program to middle-income families without legislative approval and without specific spending authority to pay for it.
Director Barry Maram pointed out that court rulings have not specifically addressed whether the Department of Healthcare and Family Services had authority to expand the program. Court decisions so far have only determined that the eligibility criteria used for the FamilyCare expansion don’t abide by federal employment rules (see more here).
Fun fact: Since JCAR was created 31 years ago, nearly half of the rules it has suspended or prohibited have happened during the past six years of the Blagojevich administration, according to Vicki Thomas, executive director of JCAR.
The governor’s office has said JCAR is just an advisory body. Thomas said if the state didn’t have a JCAR, it would lead to “abuse of power and serious problems of separation of powers because then you would have the administration making law.”
Audits
Auditor General Bill Holland cited a June 2005 audit that documented significant problems in the agency where the governor consolidated many of the state’s important functions, Central Management Services. So-called efficiency initiatives turned out to be not so efficient, costing state agencies more money than they saved, Holland said. But the agency’s contracting practices were even more problematic. Many times, members of the governor’s staff played key roles in selecting the companies that would receive the state contract, which is unusual, he said. In one instance, a state contract was granted to an agency that did not yet exist.
Holland said routine requests for such information as contracts and travel vouchers also have been problematic. “Every year those are questions we’re going to ask … but when we ask for information and it is now being routinely given to legal staff, that is not making it any easier. It is making it more complex,” he said.
Holland also repeated the scenario in which he said the governor illegally tried to import doses of flu vaccine after initial scare of a shortage, but the U.S. government never approved the European vaccine. It eventually was meant to ship to Pakistan, but it didn’t get used there, either, because it expired.
Freedom of Information
The administration had shown “disregard” and “contempt” of the law on rather routine requests for public documents under the state’s Freedom of Information Act, said Jay Stewart, executive director of the Chicago-based Better Government Association. He said the administration repeatedly denied his requests, which isn’t that unusual. But what is unusual is that officials couldn’t confirm whether they had the information requested, and if they did have the information, they wouldn’t provide it. Stewart said it was the first “hypothetical denial” he’s ever received. The association has been trying to get access to federal grand jury subpoenas served upon the administration.
Thursday, January 25, 2007
Mayday, mayday
The state has lost nearly $17 million over four years because the Illinois Department of Transportation hasn’t billed politicians and businesses the full cost of flying them between Chicago and Springfield, according to a state audit released this week.
The Illinois Auditor General’s office says the rates charged to businesses have been the same since 1981, and the rates charged to state officials and politicians has been the same since ’95. Passengers are only charged for their seat. That means if the plane seats nine but only six people are on board, IDOT eats the cost flying three empty seats. And because the planes are based in Springfield’s airport, they often fly empty to Chicago, pick up the politicians, fly them to Springfield, fly them back to the Windy City and then return empty to the Capitol. Over four years, the cost of operating the air fleet reached nearly $20 million, but IDOT only collected $2.8 million.
The audit points out that the money comes from elsewhere, meaning the Road Fund and the state’s main general fund. IDOT officials say the goal has never been to make money on the air fleet, but the agency agrees to most of the auditor’s recommendations.
The audit calls for a review of ways to be efficient and for better documentation of the reasons and the true costs of operating the flight. Only then can IDOT figure out how many planes and helicopters are needed and whether the agency should adjust its rates.
The Illinois Auditor General’s office says the rates charged to businesses have been the same since 1981, and the rates charged to state officials and politicians has been the same since ’95. Passengers are only charged for their seat. That means if the plane seats nine but only six people are on board, IDOT eats the cost flying three empty seats. And because the planes are based in Springfield’s airport, they often fly empty to Chicago, pick up the politicians, fly them to Springfield, fly them back to the Windy City and then return empty to the Capitol. Over four years, the cost of operating the air fleet reached nearly $20 million, but IDOT only collected $2.8 million.
The audit points out that the money comes from elsewhere, meaning the Road Fund and the state’s main general fund. IDOT officials say the goal has never been to make money on the air fleet, but the agency agrees to most of the auditor’s recommendations.
The audit calls for a review of ways to be efficient and for better documentation of the reasons and the true costs of operating the flight. Only then can IDOT figure out how many planes and helicopters are needed and whether the agency should adjust its rates.
Tuesday, April 25, 2006
Repeat offenses
The state agency that is supposed to reduce bureaucracy again has been cited for mismanaging state contracts and failing to provide proof of estimated savings.
Today, Auditor General William Holland issued his most recent audit of Central Management Services, the agency that oversees the state’s communications, property management and employees’ insurance benefits. Continuing a three-year trend, this audit echoes concerns about the way Gov. Rod Blagojevich’s administration awards contracts. For example, Illinois Issues cited the same concerns in an article one year ago. (See our February 2005 issue.)
The most recent audit of Central Management Services reviews fiscal year 2005, which ended last June 30. Some findings are repeat offenses from the previous year’s audit, which led Holland to report the findings to higher authorities for further investigation.
A primary concerns this time around includes the impact of allowing companies to start projects before contracts were formally filed with the state. “Oversight and public accountability is compromised when large amounts of work are performed and costs incurred before the public is made aware of the specifics of a contract,” the audit says. One vendor had been working six months before the contract was filed with the comptroller’s office.
Another potential hit to public confidence came with the finding, “No documentation was maintained to indicate that a possible conflict of interest was reviewed and resolved.”
One the concerns could even impact next year’s state budget, which is still under negotiation among Democrats. The governor often cites estimated savings as a way to pay for new programs, but auditors said the department lacks documentation to verify the amount the state could save.
The department reported that it agreed with the findings and has made improvements.
Today, Auditor General William Holland issued his most recent audit of Central Management Services, the agency that oversees the state’s communications, property management and employees’ insurance benefits. Continuing a three-year trend, this audit echoes concerns about the way Gov. Rod Blagojevich’s administration awards contracts. For example, Illinois Issues cited the same concerns in an article one year ago. (See our February 2005 issue.)
The most recent audit of Central Management Services reviews fiscal year 2005, which ended last June 30. Some findings are repeat offenses from the previous year’s audit, which led Holland to report the findings to higher authorities for further investigation.
A primary concerns this time around includes the impact of allowing companies to start projects before contracts were formally filed with the state. “Oversight and public accountability is compromised when large amounts of work are performed and costs incurred before the public is made aware of the specifics of a contract,” the audit says. One vendor had been working six months before the contract was filed with the comptroller’s office.
Another potential hit to public confidence came with the finding, “No documentation was maintained to indicate that a possible conflict of interest was reviewed and resolved.”
One the concerns could even impact next year’s state budget, which is still under negotiation among Democrats. The governor often cites estimated savings as a way to pay for new programs, but auditors said the department lacks documentation to verify the amount the state could save.
The department reported that it agreed with the findings and has made improvements.
Subscribe to:
Posts (Atom)
Posts
