Published: 2009-09-27 23:39:26
Author: Bill Mckelway | Richmond Times-Dispatch | September 9, 2009
A state program for disabled children has inadequate internal controls over millions of dollars in benefit expenditures, according to an audit released yesterday.
The regular annual financial audit of the Virginia Birth-related Neurological Injury Compensation Program showed the agency has a "significant deficiency" in procedures for verifying expenses and delivered services.
Auditors turned up payments that exceeded contract awards and said they could not locate required construction agreements.
"We found that for many [construction projects for home improvements] that took place during the current year such agreements could not be found," auditors from Cherry, Bekaert & Holland wrote.
The 21-year-old program, which collects nearly $25 million annually from hospitals, doctors and insurers, provides lifetime care for children injured at birth. State laws bar medical-malpractice suits against participating health providers.
In July, state police arrested the program's former claims manager, Iris F. Allen, on an embezzlement charge linked to Allen's involvement in a transportation company and construction company that apparently did business with the program.
At a program board meeting yesterday, Executive Director George Deebo said controls have been implemented in response to the audit but that not all of the program's expenditures for benefits made on behalf of program families are verified through the families.