Galloway: Missouri struggles to handle federal money

JEFFERSON CITY, Mo. -- An audit released Tuesday by Missouri Auditor Nicole Galloway found that several Missouri agencies handling federal money have repeatedly neglected to distribute the funds appropriately.

Galloway's audit of $8.4 billion of federal money, mainly covering Medicaid and child-care expenses, found that five of the six programs with problems distributing money had been identified in previous audits.

One program was called out for the seventh year in a row -- a $135 million program that covers childcare expenses for nearly 64,000 kids. The program through the Department of Social Services had doled out money without making sure the child-care providers or children were eligible, the audit said.

"If someone's not eligible to receive payment of tax dollars, they shouldn't be paid tax dollars," Galloway said. "We are in a limited resources environment."

The audit found the Department of Mental Health didn't keep adequate records of nearly $1 million in payments to group homes for people with developmental disabilities. The Department of Social Services also has a backlog of nearly 28,000 hospitals and health-care providers receiving money from a children's health-care program through Medicaid without a formal review.

The Department of Social Services has submitted a plan to the federal government with suggestions to fix its problems, Galloway said.

According to brief responses in the audit, the social services agency "partially agreed" with most of the auditor's findings. The corrective plan submitted to the federal government shows that the department is making efforts to fix those issues.

Department of Social Services spokeswoman Rebecca Woelfel didn't immediately respond to a request for comment.

Galloway said the repeated problems with certain agencies were "frustrating."

"State agencies have an obligation to eliminate waste," she said.

The findings are part of a series of audits identifying places where the state could save money, and it comes in the face of a dire budget situation as lawmakers cut programs to account for declining revenue and increased health care costs.

Federal funds make up about a third of Missouri's total budget, and most of that money goes to Medicaid. Those dollars are handled primarily through the Department of Social Services.