A State Auditor’s Office report released today found evidence of at least $1.67 million in “wasted” wages and compensation involving the use of temporary employees by the state’s Medicaid information technology unit. The audit covers the Office of Medicaid Management Information Systems Services, which handled the July 2013 launch of the controversial NCTracks claims-processing system that serves 97,000 enrolled providers. Auditors said the unit’s director “abused her authority through the hiring process,” including citing examples of nepotism involving her daughter and ex-husband and his wife. …. A January 2013 audit listed among its concerns “insufficient monitoring of administrative services” contracted by the N.C. Division of Medical Assistance that represented at that time $120 million of the division’s $257 million in administrative expenditures for fiscal 2011-12. Much of DHHS’ current Medicaid work has been outsourced to Alvarez & Marsal, an out-of-state vendor operating with a controversial no-bid contract that recently doubled to $6.8 million. DHHS spent $118 million on contracted personal services in fiscal 2013-14, compared with $160.9 million in fiscal 2012-13.