OLYMPIA — A state audit released this morning finds that the Chelan-Douglas Regional Support Network was unaware of required accounting and reporting systems, and its management did not receive accurate information about its finances.
The RSN distributes state and federal money to mental health services to providers in Chelan and Douglas counties. It is overseen by Douglas County and its governing board includes officials from both counties and other officials.
The RSN management, RSN governing Board and the Douglas County Commissioners did not receive accurate financial information to make operating decisions,” the report said.
Specifically, the audit found:
• Insufficient data to explain a variance of $24,600 in Medicaid funds, and a variance of $27,800 in month end reconciliations that could not be explained, due to a lack of clear accounting records.
• Five months in which one service provider was overpaid a total of $5,000. The same provider did not meet its minimum case load requirement, and should have been assessed penalties totaling $123,195.
• The RSN fund may be at risk of having insufficient funds to pay for unexpected non-Medicaid expenses, such as state hospital bed expenses. From December 2010 through December 2011, the RSN lost nearly $2.7 million. Its average monthly cost for state hospitals was $86,290.
The state auditor recommended that RSN train its staff on accounting and reporting requirements, monitor its service provider contract provisions, and establish a strategic plan to address the funding losses from use of state hospital beds.
In a written response to the audit, Douglas County said it has reassigned accounting to its certified public accountant in the county’s auditor’s office, and that the interim RSN director has worked to monitor and audit all contracts with providers.
The RSN governing board is also preparing a strategic plan to ensure its financial viability.
A more in-depth report on the audit report will follow.
K.C. Mehaffey: 997-2512