Audit: Issues found with transportation service contracts
By JoANNE YOUNG / Lincoln Journal Star
Monday, Aug 25, 2008
The Legislature’s audit of the state’s personal services contracts, to determine compliance with state law, has found a number of issues with transportation service contracts that have caused concerns.
The Performance Audit Committee, which oversees the auditing process, has scheduled a public hearing for Sept. 19 to address questions and concerns with Nebraska Department of Health and Human Services officials.
The audit looked at whether DHHS was compliant with state law in contracting for such services as transporting state wards. It also examined how the agency ensured compliance with the terms of the contracts.
Personal services contracts are agreements between an agency and a vendor, primarily for labor. State agencies have contracts for such services as security, janitorial work, consulting and, at DHHS, for such services as transportation of state wards.
The audit found the Department of Administrative Services generally complied with state law. DHHS complied with some sections.
Among other findings, the audit report showed DHHS:
* Has no comprehensive method for determining compliance with requirements for transportation contractors.
* Has no system for reviewing contract performance.
Review for the level of payment varies depending on whether the transportation is paid for with Medicaid or non-Medicaid funds. The department conducts no random sampling of non-Medicaid invoices to look for discrepancy patterns, according to the audit.
It does not have a written policy or procedure for determining mileage, the audit said, which is a critical element of its internal control for billing.
Todd Landry, director of the DHHS Division of Children and Family Services, said the department allows contractors to determine how they will record mileage, using an internet mapping site or odometer readings. It is taking under consideration whether to mandate one method for all contractors, he said.
* Had no systemwide policy on how to handle complaints against contractors until it developed one in response to the draft audit report.
Landry said on June 17 the department created a paper tracking system for compliance and complaints. In November, it will move to a more automated system.
* Does not penalize foster parents and transportation drivers equally for not using child safety seats. Foster parents can have their foster parent licenses suspended or revoked for the offense, but there is no similar penalty for transportation drivers.
“We do not agree with (the department’s) position that … the relative amount of time a person (either the foster parent or driver) spends with the child should influence the penalties relating to the requirement to have the appropriate child safety seat,” the audit concluded. “The offense is the same and the penalties should also be the same.”
Landry said the department is looking at any areas where sanctions are different.
* Does not conduct a nationwide criminal background check for transportation providers like the check for foster parents.
The background check for transportation providers is for Nebraska only, unless the provider discloses a reason to check with other states.
Landry said the department relies on the Public Service Commission to certify transportation providers, and the PSC does the more limited background checks.
“We are currently working with them for an additional level of background checks,” he said.
Performance Audit Committee Chairman DiAnna Schimek said a number of concerns had been raised about the contracts, especially after a 25-year-old Elkhorn woman who was transporting a state ward was arrested in February for drunken driving.
Denise Thomson pleaded guilty to driving under the influence, negligent child abuse and two traffic violations. She was sentenced to two years probation, jail time of at least seven days and fines. In addition, she cannot drive for one year.
Authorities said Thomson had a blood-alcohol level that was five times the legal limit when she was pulled over on Interstate 80 in Sarpy County.
She worked for Beneficial Behavior Health in Omaha, which had a transportation contract with DHHS. An 8-year-old girl who was a ward of the state was found in Thomson’s car when she was arrested.
At the time of the incident, Landry said, the department put an immediate hold on the company that employed Thomson, which remained until an investigation was completed. It then made changes in the company’s contract that included random drug tests.
The Sept. 19 public hearing on the personal services audit will be held at 2:30 p.m. in Room 1525 of the state Capitol.
Reach JoAnne Young at 473-7228 or jyoung@journalstar.com.
