Audit determines state lost millions to contractors
Source: By Mike Zapler, Mercury News (CA), Wed, Nov. 01, 2006
Contractors that provide drug treatment to California parolees received $5 million more from the state than they were entitled to because of lax oversight by corrections officials, according to an audit released Tuesday (.pdf).
The report by the state inspector general's office also revealed that one contractor, Mental Health Systems, overstated its expenses by $250,000 over a period of several years by continuing to charge the state the full cost of 22 automobiles, even after they had depreciated significantly in value.
....... Representatives of the other three contractors named in the report -- Walden House of San Francisco, WestCare and Phoenix Houses -- did not return calls for comment.