County audit report in
Franklin/Fulton MH/MR has received the final audit report from the State Bureau of Financial Operations (BFO), Department of Public Welfare (DPW). The audit reviewed the contracts between MH/MR and Childhood Early Intervention (CEI) for fiscal years 2007/2008 and 2008/2009.
The audit was initiated by county staff when irregularities were noted during rate negotiations for fiscal year 2009/2010. County staff requested BFO perform the audit to assure proper interpretations of fiscal regulations.
The primary findings/disallows relate to disallowable amounts of salaries for the two owners, the amount of rent paid to a related party, and vehicle/travel expenses. The audit was onducted from July, 2009 to Sept. 3, 2009. A draft was then shared with CEI and they were given ample time to present their facts for BFO’s consideration.
With the assistance of the Controller’s Office, in anticipation of these audit findings Franklin County had already withheld $107,273 that would have been paid for the years in question.
The total amount disallowed for the two fiscal years is $305,752.
Recently, the county was notified by the Office of Child Development and Early Learning (OCDEL) that it would not require any reimbursement from Franklin County beyond the $107,273 that the county has withheld from CEI. Consistent with the DPW’s audit report and recommendations, the MH/MR Program, as a steward of state and county tax dollars, will seek reimbursement for the difference from CEI, a Limited Liability Corporation.
The Early Intervention program serves children from birth to 3 years of age with developmental delays.