Yet another audit report has come out documenting the State’s utter disregard for requirements for residents to obtain services, licenses and other formal documents. As reported by Kathleen Miller in the Examiner, Audit: 52K receiving aid lack valid SSN’s:
About 52,000 people who received public benefits like food stamps and temporary cash assistance in Maryland last year didn’t have valid Social Security numbers, a state audit has found.
This report comes from Maryland’s Office of Legislative Audits. The cover letter to the referenced report reads:
November 30, 2007
Delegate Steven J. DeBoy, Sr., Co-Chair, Joint Audit Committee
Senator Nathaniel J. McFadden, Co-Chair, Joint Audit Committee
Members of Joint Audit Committee
Annapolis, Maryland
Ladies and Gentlemen:
We have audited the Family Investment Administration (FIA) of the Department of Human Resources for the period beginning August 11, 2003 and ending March 31, 2007.
Our audit disclosed a number of deficiencies in FIA’s monitoring of its public assistance programs. For example, computer matches designed to detect ineligible recipients (such as by comparing Maryland’s recipients to recipients in other states) were not performed for extended periods. Furthermore, when the matches were performed, due to limitations in the computer program used, the vast majority of public assistance recipients were excluded from the matches. We determined that approximately 52,000 individuals who received public assistance benefits during 2006 lacked valid social security numbers. Recipients are required by federal and state law to disclose their social security numbers; without valid social security numbers, certain eligibility procedures (such as matches with State wage records) are ineffective. FIA made assistance payments totaling $488 million during fiscal year 2007, primarily for temporary cash assistance and food stamps.
Our audit also disclosed that access to the computer system used to award and process public assistance benefits was not adequate as employees could modify recipient benefits without approval. Finally, we noted that several contracts were not sufficiently monitored to ensure that contractor billings were based upon contractor costs and to ensure that all services paid for were received.
Respectfully submitted,
Bruce A. Myers, CPA
Legislative Auditor
This comes on the heels of an October 19 report on the MVA, for which the cover letter reads:
October 19, 2007
Delegate Steven J. DeBoy, Sr., Co-Chair, Joint Audit Committee
Senator Nathaniel J. McFadden, Co-Chair, Joint Audit Committee
Members of Joint Audit Committee
Annapolis, Maryland
Ladies and Gentlemen:
We have audited the Department of Transportation – Motor Vehicle Administration (MVA) for the period beginning January 1, 2004 and ending November 30, 2006.
Our audit disclosed that MVA did not have effective policies and procedures to oversee its Ignition Interlock Program (IIP). By requiring enrollees to have ignition interlock devices installed in their vehicles, IIP is intended to help prevent individuals convicted of alcohol-related driving violations from driving while intoxicated. However, MVA failed to take appropriate follow-up action for certain individuals who repeatedly violated the terms of the program, and such individuals were subsequently returned to a normal driving status.
Our audit also disclosed that procedures and controls over driver’s licensing transactions and related suspensions and revocations were not sufficient. For example, required documentation (such as proof of residency) was not always obtained for licenses issued, and certain licenses appeared to have been issued improperly, such as to individuals who were deceased. License suspensions and revocations and related appeals were also not processed timely, allowing licensees to retain their driving privileges for longer periods.
MVA’s procedures for monitoring licensed vehicle dealerships were not comprehensive to ensure that vehicle titling and registration transactions were properly processed and that the related excise taxes and fees were properly assessed. For example, dealership audits of these activities were not comprehensive, and MVA improperly waived certain penalties assessed for late submission of vehicle excise taxes and related fees by the dealerships.
MVA did not take timely action to enforce State laws that require vehicle owners to maintain insurance coverage for registered vehicles. Although State law requires the immediate suspension of a registration for any vehicle for which the insurance coverage is terminated or lapses, we found that MVA generally waited 115 days to process these suspensions. Furthermore, MVA did not invoice uninsured motorists for the related assessed penalties in a timely manner.
Numerous security and control deficiencies existed with respect to eMVA Store, which is operated by a contractor and provides online services to the public. For example, sensitive personal and financial information of eMVA Store customers was not adequately protected, critical security events were not adequately monitored, and critical software was out of date. Furthermore, the contractor was not required to receive periodic audits of its online security controls.
Finally, a number of internal control and record keeping deficiencies were noted in areas including the Vehicle Emissions Inspection Program, cash receipts, purchases and disbursements, and equipment.
We determined that MVA’s accountability and compliance level was unsatisfactory, in accordance with the rating system we established in conformity with State law. The primary factors contributing to the unsatisfactory rating were the number and significance of our audit findings, and the number of repeat audit findings from our preceding audit report. In this regard, MVA did not sufficiently address 12 of the 22 findings in our preceding audit report.
Respectfully submitted,
Bruce A. Myers, CPA
Legislative Auditor
And an August 8 report on the Department of Health and Mental Hygiene, for which the cover letter reads:
August 8, 2007
Delegate Steven J. DeBoy, Sr., Co-Chair, Joint Audit Committee
Senator Nathaniel J. McFadden, Co-Chair, Joint Audit Committee
Members of Joint Audit Committee
Annapolis, Maryland
Ladies and Gentlemen:
We have audited the Office of the Secretary and other units of the Department of Health and Mental Hygiene (DHMH) for the period beginning July 10, 2003 and ending August 31, 2006.
Our audit disclosed serious deficiencies relating to the issuance of, accounting for, and safeguarding of vital records, including birth certificates. As a result, there was no assurance that certificates were only issued for legitimate purposes and that the related fees were deposited. For example, sufficient identification was not always required from applicants when requesting birth certificates. In addition, DHMH did not use prenumbered certificates for the majority of critical forms issued, and did not adequately account for the forms that were prenumbered. We also noted that DHMH did not properly oversee the issuance and security of birth and death certificates by the local health departments. Finally, access to the vital records automated system was not adequately restricted. Falsified or stolen vital statistics could allow the holder to obtain other critical documents (such as passports) and improper benefits (such as Social Security benefits).
Our audit also disclosed that DHMH did not review the budgets of subproviders that received a significant portion of the financial assistance provided to primary providers (such as to local health departments), and certain subproviders were not audited, as required, to provide assurance that their expenditures were reasonable. In addition, DHMH did not inspect various health care facilities annually as required by law. For example, 1,139 of the 1,567 (73 percent) licensed assisted living facilities were not inspected during fiscal year 2006. Furthermore, since its inception in 2005, taxpayer donations to the Cancer Fund, totaling $890,000, have not been spent; these donations are to provide grants for cancer research, prevention and treatment. Additionally, a federal fund reimbursement was not requested timely, resulting in lost interest to the State of approximately $396,000.
Finally, we noted internal control and record keeping deficiencies relating to purchases and disbursements, corporate purchasing cards, information systems, payroll, and equipment.
Respectfully submitted,
Bruce A. Myers,
CPA Legislative Auditor
