The D.C. inspector general uncovered more than $50 million in waste and $125 million in fraud during the past fiscal year, waste and abuse that account for more than 3 percent of the city’s annual budget.
The IG’s audit division in fiscal 2009 issued 35 reports with hundreds of recommendations that if implemented would return $50.3 million to D.C. coffers, the office claims in a new report.
The investigations division of the IG during 2009 presented 37 cases of fraud to the U.S. Attorney’s Office and eight to the D.C. Office of the Attorney General, resulting in 25 arrests, 17 indictments, 16 convictions and restitution orders totaling $127.2 million, according to the office. The Medicaid Fraud Control Unit garnered an additional $2.1 million from provider settlements.
Of the District’s $5.4 billion budget, $180 million amounts to 3.3 percent lost through waste, fraud or abuse.
“Most D.C. residents, with money being tight these days, would be floored by a number like that,” said Paul Craney, executive director of the D.C. Republican Party. “Imagine, if we put more money and people into the IG, what that would uncover.”
D.C. spending by the numbers in fiscal 2009
» $3.7 billion on contracts
» $1.2 billion on public education
» $900 million received through federal stimulus
The figures were released as part of the IG’s fiscal 2009 annual report, in which Inspector General Charles Willoughby urged all District residents to be “exceptionally vigilant in recognizing and reporting instances of fraud, waste, and abuse as a means to ensure the efficiency and integrity of the District government,” especially “during these straitened financial times.” The Fenty administration must adopt the IG’s recommendations to achieve “potential monetary benefits,” said Bill DiVello, assistant inspector general for audits. That means either recouping money owed to the city or putting in controls to prevent future losses.
“Some things we’d like to see more aggressive action on, certainly in the contracting area,” DiVello said.
The use of purchase cards by the Office of Unified Communications, for example, was the subject of a February audit in which the IG discovered numerous questionable or unjustified purchases. Those included $15,000 to clean and maintain chairs and $59,365 for uniforms worn by employees who do not meet with the public.
Auditors issued myriad recommendations, such as establishing internal control procedures over purchase card transactions. But in November, the OUC charged $900 for staff massages, an expense deemed even by Mayor Adrian Fenty to be inappropriate.
“There’s one it appears they didn’t take any of our recommendations,” DiVello said.
