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October 2, 2008
DSS Chief Torches Comptroller
Thursday October 2, 2008
It hasn't been a great couple of days for Comptroller Nancy Wyman.
First, Democrats and Republicans both said she was wrong yesterday to include a half-billion-dollar "structural deficit" along with the current $300-million deficit facing lawmakers.They said it won't figure into state finances until the next budget begins in July 2009.
And now, Mike Starkowski, commissioner of the state Department of Social Services, said her plan to use an existing state contractor to run a $100,000 audit of DSS would be tainted because the contractor, UHY Advisers, is affiliated with a company representing two service providers that are appealing DSS rates.
"Given that UHY would be looking at DSS records, logs, financial statements and other documents as part of your audit, it is highly inappropriate and, in fact, a gross conflict of interest for this organization to have access to such information while repersenting and attempting to 'deliver' for private clients," Starkowski wrote in a letter to Wyman that was just made available to Capitol reporters.
At the time Wyman announced the audit last month, she was appearing in cooperation with legislative Democrats, who seemed to be using the audit, which was not the result of competitive bidding, as a means to hold off on a special session to address the growing deficit in the $18.4-billion budget.
Wyman said in a late-afternoon statement that she's "confident" that UHY can conduct an audit "with the utmost integrity and objectivity."
Here's the rest of her statement:
"I am aware that UHY does extensive business in the health care industry in Connecticut, and I view that expertise as a benefit to our goal of tracking exactly how DSS is spending more than $5 billion of the state budget every year.
We had anticipated that there may be some areas of the audit that might require us to employ a UHY subcontractor that would report directly to me and be completely independent of UHY.
That arrangement would ensure that all appropriate safeguards are in place to protect any information that might be considered sensitive.
I believe Commissioner Starkowski’s letter is premature because we have not yet discussed the scope of the audit with him.
There is an element of urgency here because the legislature needs this audit to be completed in time for them to begin formulating a budget in January."
Posted by Ken on October 2, 2008 1:57 PM
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