Federal health agency ordered Missouri to turn over records on internal investigation

JEFFERSON CITY, Mo. -- The U.S. health department has subpoenaed records from the Missouri health agency as it reviews potential problems with the spending of federal funds.

The revelation that the U.S. Department of Health and Human Services' inspector general ordered the state to turn over documents related to the state health agency's internal investigation was made in a newly released state audit. The state and federal agencies previously had refused to discuss the subpoena.

The Missouri Department of Health and Senior Services responded Friday that it wrapped up its internal investigation in early March. But Bret Fischer, the agency's director of administration, said the final report and recommendations won't be complete for at least another month, and he can't discuss it yet.

But the state auditor's office said the review has determined federal grant money may have been improperly spent.

According to the report from State Auditor Susan Montee, the state health department's investigation covers the 2005 and 2006 fiscal years and focuses on a few key areas. They include whether an information technology contractor was paid with the correct federal grants, whether equipment purchases of more than $10,000 used the correct federal grants and whether employee time sheets and expense reports were accurate.

State health officials in October warned that a small-scale review uncovered potential problems with the agency's billing practices and said a broader review was being conducted.

The department said the problem came to light during a May to July review of its information technology program, done in preparation for moving all such state services under the Office of Administration.

The state health department last year said it was unclear whether the errors were bookkeeping mistakes or intentional wrongdoing.

The auditor's office said it is monitoring the progress of the review and will eventually report the final results.

Also pending is a lawsuit against the department filed by a former state health worker who claims she was fired after reporting that some workers were misusing federal money.

Employee Rebecca Mankin, of Russellville, said in her lawsuit that she was given no reason for her July firing. She claims she was fired because she told the state auditor that some Health Department employees were misusing federal grants. She said she was placed on administrative leave the next day. She also said she reported her concerns within the agency and to the attorney general's office.

The suit was filed in August in Cole County Circuit Court but hasn't been resolved.

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Missouri Department of Health and Senior Services: http://www.dhss.mo.gov