Gov. Heineman Announces State Auditor & DHHS
Collaborating on Improvements to Agency Accounting

(Lincoln, NE) Gov. Dave Heineman and Chris Peterson, Chief Executive Officer (CEO) of the Nebraska Department of Health and Human Services (DHHS), announced today that DHHS is working with State Auditor of Public Accounts Mike Foley to improve accounting and internal control procedures within the department.

A July audit noted that accounts receivable procedures for several facilities and programs run by DHHS needed improvements. Further study by the Auditor’s Office indicated the need for accounting improvements at the state’s three regional centers and the Beatrice State Developmental Center (BSDC), as well as community-based Developmental Disabilities (DD) services programs.

The review calls for DHHS to improve procedures to ensure compliance with all laws and regulations and to ensure that accounts receivable records are accurate. A more detailed review of issues identified by the Auditor’s Office is being released today.

“I’ve challenged the Department of Health and Human Services to become more accountable and improve services and that means that anytime concerns are identified, they need to be addressed,” Gov. Heineman said. “I appreciate that the department is being open by bringing these issues to the public’s attention and will work with the Auditor’s Office to implement the needed corrections.

“I want to thank Auditor Foley and his staff for their additional review they’ve done and the recommendations they have provided and I appreciate the fact that Chris is taking immediate action to correct these inadequacies.”

Clients receiving services through regional centers, BSDC and community-based DD services are liable for their cost of care, support, maintenance, and treatment. DHHS is to bill clients, or other responsible persons, monthly based on ability-to-pay determinations.

Auditor Foley said, “The investigatory work that my office has now concluded at the Nebraska Department of Health and Human Services has resulted in some serious findings. The report is not happy reading. However, it is a pleasure to work with people who genuinely want to know where the problems are so that together, we can get them fixed.”

Peterson said, “The State Auditor has identified a number of issues we must correct and we have already begun to work with the Auditor’s office to ensure changes are made. During our discussions, it became apparent that a more detailed review is warranted, one that will incorporate the issues and recommendations from the State Auditor and provide guidance on implementation.”

DHHS has asked a private accounting firm to perform a review of DHHS internal accounting activities, which is expected in March 2008.