INV-2015-0401

Our special investigation of the Office of Medicaid Management Information Systems Services (OMMISS) within the Department of Health and Human Services (Department) revealed OMMISS wasted at least $1.6 million through excessive wages and commissions, unjustified overtime, and holiday pay to temporary employees over three fiscal years. Investigators found the OMMISS Director engaged in or allowed nepotism by employing at least 11 separate groups of family members including her family members and employing at least 15 individuals with personal connections to her. In addition, at least seven of those 15 individuals were not qualified and/or received unjustified pay rates. Despite her position reclassification that prohibited her from earning compensatory time, the OMMISS Director received more than 2,000 compensatory hours that may have resulted in increased retirement benefits. Investigators also discovered the Department submitted monthly reports to the General Assembly that omitted at least $260,000 of overtime and compensatory time worked and paid on the Medicaid Management Information Systems replacement project. OMMISS violated Session Law by hiring at least four information technology staff and contractors without the required approval by the Office of Information Technology Services. Despite findings in two prior audit reports about the lack of effective management and oversight of OMMISS, the Department failed to take steps to prevent and detect abuse and waste of state resources.