Richmond’s social-services agency overbilled nearly $4 million to state
Richmond Mayor Dwight C. Jones announced yesterday plans to correct "major financial management failures" in the city's Department of Social Services after the discovery of an estimated $3.8 million overbilling to the state.
"We have no evidence that any of this is based in fraud or corruption, but rather poor management and record keeping which indicates a need to make significant procedural changes and improve the department's operations," Chief Administrative Officer Byron C. Marshall said in a statement.
The Jones administration said it became aware of the billing errors this week and is working with state officials and the city auditor to correct them.
Tammy D. Hawley, Jones' press secretary, said the billing problems appear to be the result of coding errors on invoices for certain foster-care services that are supported with federal funds.
The city's Department of Social Services reported the problems to the city administration, which then contacted the state, Hawley said. Changes in the state's coding system late last year may have contributed to the overbilling that began in January, she said.
"I do know there is a need for some reimbursements," Hawley said. "I don't know the amount."
City Council President Kathy C. Graziano said, "I think the administration is taking a proactive approach to it . . . to try to get it straight."
The state Department of Social Services is "working with Richmond city officials to closely examine when and how the accounting mistakes occurred, and what monies may need to be reimbursed," spokeswoman Marianne McGhee said in a statement.
"We appreciate the disclosure by Richmond city officials and their willingness to carefully account for all dollars spent and improve financial procedures as we move forward."
Richmond has not had permanent leaders overseeing social services since June 2008, when Paul D. McWhinney resigned as director of social services and interim deputy chief administrative officer for human services to become director of family services for the state.
Anne Kisor has served as the city's interim director of social services since July 2008. She did not immediately respond to a message seeking comment.
Officials said the city has initiated internal reviews and personnel changes as a result of the overbilling, but details were not disclosed.
The Jones administration is seeking applicants for director of social services and deputy CAO for human services.
City Councilman Chris A. Hilbert, chairman of the council's health, human services and education committee, agreed that the city should make the appointments promptly.
"This is very troubling. That certainly is a significant amount of money," he said. "I appreciate the administration, it looks like here, is looking into this."
Contact Will Jones at (804) 649-6911 or
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Reader Reactions
Yes, Va Taxpayer, there certainly are many good employees working for the City and they do deserve support.
That said, as you pointed out “Department Directors often following their own rules and City Management did not enforce the established policy” and “Too many financial decisions are made within city government by people without financial expertise…“, for this reason I believe Dr. Kisor and ALL THOSE WHO HAD RESPONSIBILITIES in the matter which they failed to properly discharge deserve discipline.
What is needed is an independent Financial Oversight Board, reporting directly to Council, comprised of Richmond taxpayers, outside of government, who possess superior expertise and experience in financial management, working with the City’s Inspector General, Administration, and Council, to determine whether those given financial responsibility throughout City Government are (a) competent, (b) effective, and (c) performing their jobs in a way that meets the needs of Richmond’s taxpayers. Those having financial responsibility who do not meet these criteria must be reassigned, demoted, or terminated.
Policies and procedures within the City of Richmond were in place to avoid this types of error. Department Directors often follow their own rules and City Management did not enforce the established policy. If you look you will find more errors in Social Services and other City agenies. Many of these issues were brought to the attention of City Management and the old audit team years ago, but no one wanted to hear or act on them. There are still people in city government who know where the skeletons are buried. Many of the people who knew what they were doing and could get the job done were not appreciated and since moved on. They were kicked to the side in favor of people who said the right thing and kissed the left cheek, if you know what I mean. Too many financial decisions are made within city government by people without the financial expertise to make them and for some reason they refuse to listen to the people who are qualified. Thing could be a lot worse but they could be a lot better also. There are some good people working for the City, they need support.
Several, perhaps RDSS employees, have defended Anne Kisor. One characterizes her as a “superlative leader”. To my knowledge nobody has criticized Ms. Kisor’s character or personality. Holding a position of public trust, however, she is legitimately subject to the taxpayers’ assessment of the degree to which she has adequately met her responsibilities and performed the duties of her position. Over billing the Commonwealth by $3.8 million dollars, is not indicative of “superlative leadership” or acceptable performance on the part of one charged with overall responsibility for the agency - including accountability for its financial affairs.
The Interim Director voluntarily accepted her job along with the salary, duties, responsibilities, and expectations of accountability which accompany it. Having demonstrably failed to provide the financial oversight, management, and leadership required, she must, along with others in the agency who shared financial duties and responsibilities, be held accountable.
It is not a question of her being a nice person with a good academic background and pleasing personality; rather, it is a question of whether or not she adequately performed her job in a position of public trust. I submit she did not.
After reading the media release from the Mayor’s office I decided to write. I believe we all should wait to see what the auditor’s findings are as RDSS finance office does not code cases, programs are responsible to provide accurate information to the finance office for reimbursement of funds. Where has the money being going all this time. Where you find the money you will find the problem.
Hmmm. This certainly makes me want to turn even more of my life over to a government entity! Where do I sign up?
It is good there is freedom of speech, but when persons do not know the entire situation but only what is briefly commented by reporters, then one should wait for the entire story then make an objective accurate comment. Dr. Anne Kisor is a respected leader in Social Services. She is respected by her staff and loves her staff and is not an overbearing boss. She is the Interim Director of Social Services,and should be given every opportunity to correct any error that is found within the agency. R we so quick for blood, is that the society we are demonstrating for the future generation. Until you know the full story, don’t be so quick to judge.
“Posted by ( Guesswho ) on August 22, 2009 at 7:38 am “
GW - Hey, so we guess? ;) I am as well. However, that is not Paul’s job. Think the Branch building. They should have been looking at this.
More on topic, my opinion of Dwight Jones just went up a lot. I was neutral on him, but he has gotten my respect on this one.
Anyone wondering why the American people don’t want bigger government?
It appears corporate America is not the only greedy institution.
TK - this is why we don’t want your tax increases for ridiculous programs, let us keep our money and support our charities.
Go ahead and hang out some more with your buddy, President Flame-out.
be_4_real - Nice to see we are on the same page. And yes ABC123 apparently doesn’t know the structure but most importantly the accountability structure within DSS. Nothing personal but Interim Director Anne Kisor doesn’t have all financial backbone for this position. She should and will be held accountable for this deplorable mismanagement, but it should not stop there. Richmond’s have a indpendent firm perform a complete audit of all their financial responsibilites, I have no doubt there are others who don’t belong in positions that have financially responsiblility. Once again the city of Richmond is displaying their reckless financial mismanagement. When will it end???
Anne Kisor should be fired!! This happened under her watch and she should be held responsible. Credit she should be given for her social work practices, but that’s it. While she has made strides in implementing innovative programs, she has also created an environment of unfair hiring practices and inflated salaries. Anne Kisor may be a sweet person but she does not know how to run an agency…and that includes financial management.
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