Maryland’s Department of Human Resources lost more than 42,000 items from its inventory — including computers and furniture — totaling $27.5 million over the last 10 years, according to a new audit. The agency has since tracked down more than 31,000 of the 42,433 lost items, which accounted for about one-third of its inventory, according to Nancy Lineman, a spokeswoman for the department. The agency now reports missing equipment within 10 days of discovering the loss, in accordance with the state Department of General Services’ requirements, she said.
At the time of the audit by Maryland’s independent Office of Legislative Audit, “There were no procedures to investigate and resolve missing items; rather, the items were simply noted in the inventory records as ‘not found,'” the audit states.
Auditors also found the Department of Human Resources failed to report $11.3 million in equipment purchases, including a quarter-million-dollar splurge on office furniture. Six previous audits dating to 1992 have pointed out the agency’s failure to report purchases.
“It’s a mess,” Legislative Auditor Bruce Myers said.
In an auditors’ test of 47 pieces of equipment at the agency worth $64,000, 14 items totaling $24,000 were not recorded in the inventory records.
The Department of Human Resources has since corrected the oversight, according to its written response to the audit.
Other audit findings conclude that the agency:
• Lost $9.6 million federal funding for a program that keeps children out of foster care in fiscal 2009. The agency failed to submit proper paperwork to the federal government, and the state had to pick up the
tab through its general fund.
• Bought $850,000 of computers without asking the state for permission or opening the purchase to a competitive bid process, which is legally required for procurements worth more than $5,000, according
to Myers. The auditors reject the agency’s argument that the purchase was authorized under an existing contract.
• Failed to ensure that $30 million in grant expenditures and $6.1 million in legal expenditures were properly spent.
• Gave 22 employees “unrestricted access” to a database used to provide people with public assistance including food stamps, foster care payments and child support payments — which totaled $753 million
in fiscal 2009. A user with unrestricted access could manipulate account information to give clients increased benefits or payments — though no such instances were reported — according to the audit.
