Final review of audited contracts shows no loss of funds to fraud
Crossposted from Cultivating Connections
Last year, the King County Auditor’s Office released a report showing the need for stronger financial oversight at DCHS and identified 19 contracts for further review. Since then, DCHS has not only implemented stronger oversight and internal controls over public dollars, but the department, in partnership with King County’s Finance and Business Operations Division (FBOD), has now confirmed that no public funds were lost to fraud among the 19 contracts.
Following Clark Nuber’s independent forensic review of the 19 contracts valued at $12 million, an estimated $320,000 in potential improper payments were identified for further review. After reviewing the payments, DCHS found:
- A total of $10,564 in potential fraud from two of the 19 organizations. DCHS disallowed these costs and did not pay them, ensuring no public tax dollars were lost. The Ombuds Office referred both cases to law enforcement.
