Computer agency billing sloppy

Thursday, Dec. 12, 2002 | 11:10 a.m.

CARSON CITY -- The state's Department of Information Technology mishandled millions of dollars in public money, according to a legislative audit released Wednesday.

The long list of financial bungling at the agency included:

Assemblywoman Vonne Chowning, D-North Las Vegas, said if some of the transgressions spotlighted in the audit had occurred in "in private business it would be considered theft. They stole from the state."

Terry Savage, the director of the information technology department, acknowledged to the Legislative Audit Committee on Wednesday that "serious issues" are plaguing the department, and that he is trying to resolve them.

The audit was one of three reviewed Wednesday by the audit committee.

Gov. Kenny Guinn's office declined to comment specifically on the multitude of deficiencies found in the agency audits of transportation, information technology and forestry. Guinn's press secretary Greg Bortolin said, "The Legislature plays an important oversight role in government.

"We're always open to learning better ways to serve the public. The audit process is very important in keeping government efficient," said Bortolin.

Chowning said she was "very surprised, shocked and very concerned" because of the loss of taxpayer dollars.

"If we're losing money, that makes our job more difficult," said Chowning, a member of the Assembly Ways and Means Committee that must build a balanced budget.

She said the inefficiencies and other problems discovered in the audit may be due to the cuts in state government.

"I don't understand if an agency is having problems, why they have not spoken up. Are they so concerned about losing their job?"

Sen. Joe Neal, D-Las Vegas, said the audits "seem to show we have a lot of people in place who do not understand their job."

He said employees take advantage of a lack of controls and the state loses money.

"It does raise the question who is in control. What type of instruction is coming from the top and if it is getting down to the lower levels," asked Neal, a Democratic candidate for governor in the last election.

"Hopefully this can be corrected and the state will not lose too much money. The state doesn't have that much money," said Neal.

He said these audits raise the issue whether state government is in a "free-fall operation. It looks like they are crumbling."

The legislative audit of information technology said the department "lacks effective financial and administrative controls in several areas" including overtime and telephone charges.

Auditor Rocky Cooper said internal controls are bypassed or ignored.

For instance, the department overcharged sister state agencies $5.2 million for its services as of June 30, 2001. But it had undercharged other agencies $4.6 million.

Savage's agency, which has 223 positions, is supported by fees paid by other departments that use its technology services.

The audit found employees recorded overtime when they never showed up for the job. For instance, it found 11 instances where workers claimed overtime at the state's computer facility on a weekend -- but the automated and manual security system did not show the employees entering or leaving the facility on the day the overtime was claimed.

In another finding, the audit said two department workers took time off to volunteer for a Marlette Lake fish spawning project for the state Wildlife Division. Yet they submitted time sheets showing they worked the entire day -- and also put in for one hour overtime.

In another case, an employee took time off to volunteer to capture bighorn sheep. He claimed regular time on the job plus two hours overtime.

Savage said no disciplinary action was taken in these cases.

In another overtime-related finding, the audit said the department paid employees about $333,000 in overtime last year. Of that total, five employees accumulated 3,260 hours and received $131,000 in overtime.

Also, two employees submitted claims for travel reimbursement on eight days when their time sheets showed they were off sick.