CFOSnafu.com » 15.8 mil in property goes missing; agency claims it’s not so bad

15.8 mil in property goes missing; agency claims it’s not so bad

August 19, 2008 by Shane Borer
Posted in: Auditing, Fighting off fraud, In this week's e-newsletter, Latest news & views, Tech failure, Whistleblowers

Are you on top of inventory, records-retention and expense reports? You’re way ahead of the curve.

Operating under the U.S. Dept. of Health and Human Services, the Indian Health Service provides medical care to 1.9 million people, most of whom are Eskimos or in federally-recognized American Indian tribes. Thanks to a whistle-blower’s call to a government hotline a year ago, investigators have turned up some shady business practices at  Service.

After an audit of property records, about 5,000 items are reported stolen or missing, worth roughly $15.8 million.

Health Service officials say the findings aren’t justified — most of the items were only “temporarily misplaced,” and some discarded equipment was outdated.

Government Accountability Office (GAO) officials didn’t buy it. Included on their list of “egregious” errors:

  • $700,000 of IT equipment was found damaged — mostly by bat dung — in a storage room
  • a yard sale by several employees resulted in 17 computers being given away for free
  • one stolen desktop (not bad) that contained a database with personal details of 849 miners (not good),
  • fake purchasing documents used to deter auditors, and
  • a missing set of “jaws of life” equipment.

The missing equipment is bad news for an already-shorthanded tribal community, claim GAO officials.

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2 Responses to “15.8 mil in property goes missing; agency claims it’s not so bad”

  1. Martha Says:

    Gee what a surprise – oh that’s right how many Indians died since the 1800′s because the federal government, who set themselves up as care givers, have always stolen from the Indians. Here’s an idea – let people that are capable of taking care of the Indians take care of them – oh – that would be the Indians

  2. Kelly C Says:

    And to think some people want government to control their healthcare options.


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