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Wednesday, August 20, 2014

State audits find prison, hospital payroll abuses - LA Times

Audits of a state prison and psychiatric hospital detail hundreds of thousands of dollars in improper payments and financial problems, including outright payroll fraud, and medical staff and guards receiving questionable bonuses and holiday pay, according to reports released Wednesday.

The financial reviews at California's Sacramento prison near Folsom and the Patton State Hospital in San Bernardino are among 14 state agency audits required this year in the wake of payroll abuses uncovered two years ago at California's parks department.

The reviews, conducted by the state Controller, found rates of unauthorized or improper pay in as many as 88% of the relatively small number of files examined, amounting to excess payments to state workers of nearly $230,000.

Auditors have called on the state agencies to conduct full internal reviews of their payroll systems for the last three years.

There was no immediate response from the Department of State Hospitals, but a spokesman said the corrections department is conducting such a review and has issued new requirements to document who signs off on payroll decisions.

State audits find prison, hospital payroll abuses - LA Times

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