2A Wednesday, December 6, 2017 Appeal Tribune
Audit details millions in
misspent funds at OHA
CONNOR RADNOVICH
SALEM STATESMAN JOURNAL
USA TODAY NETWORK
Failure to appropriate-
ly determine Medicaid el-
igibility for 115,233 recip-
ients cost the Oregon
Health Authority approx-
imately $88 million in
"avoidable expenditures,"
according to an audit re-
leased Nov. 29 by the Sec-
retary of State's office.
The audit focused on
various business prac-
tices at OHA, specifically
that the agency should de-
velop methods and addi-
tional oversight to pre-
vent improper payments
and strengthen proce-
dures to recover mis-
spent money.
The audit indicated the
agency does not have suf-
ficient processes in place
to this end.
The money detailed in
the audit is the most re-
cent revelation of mone-
tary mismanagement at
OHA. The agency recent-
ly admitted to overspend-
ing approximately $74
million on coordinated
care organizations for
dual Medicaid- and Medi-
care-eligible individuals
and $78 million to con-
tractors or other entities
for errors around abor-
tion, prisons and undocu-
mented immigrants.
"The amount of waste-
ful and incompetent
spending at OHA has
been staggering and has
gone on for at least the
past four years," Secre-
tary of State Dennis Rich-
ardson said in a statement
accompanying the audit.
The audit's recom-
mendations included: in-
creased oversight of co-
ordinated care programs;
clarify rules regarding
the accountability of Me-
dicaid providers for im-
proper payments; ex-
plore incentive programs
to better prevent, detect
or recover overpay-
ments; and annually rec-
oncile all individuals in
various computer sys-
tems to verify that their
eligibility is appropriate-
ly re-determined.
In his statement, Rich-
ardson suggested a posi-
tive outcome from the au-
dit is that there is now
nearly $100 million avail-
able to spend for other
purposes because the
budget was created with
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Oregon Health Authority Director Pat Allen said the agency
was tracking close to its budget forecasts.
CONNOR RADNOVICH/STATESMAN JOURNAL
more people in the sys-
tem.
However, OHA Direc-
tor Pat Allen said the Leg-
islative Fiscal Office was
aware of the ongoing re-
determination of those
115,233 individuals and
took that into account
when creating the bud-
get. He said the agency
was tracking close to its
budget forecasts and
shouldn't need much ad-
justing in the 2018 legisla-
tive session.
Allen said he expects
to find more problems
within the agency that he
was picked to lead in Sep-
tember, echoing his com-
ments at legislative hear-
ings earlier this month.
"The audit is a ... rea-
sonable assessment of
our business practices,"
Allen said.
While OHA agreed
with the audit's eight final
recommendations,
the
agency pushed back
against some underlying
assumptions and esti-
mates that were used to
arrive at those conclu-
sions.
The agency disagreed
with the audit that there
were 31,300 "potential du-
plicate" payments in 15
month, because an analy-
sis of 2,700 of those trans-
actions showed that 98
percent of payments
were appropriate.
They also disputed the
characterization that the
$88 million in payments
to cover 115,233 people
was "avoidable" because
federal
officials
ap-
proved delaying eligibil-
ity renewals after the
complete failure of the
Cover Oregon insurance
program.
Of those people, OHA
previously reported that
24,100 no longer qualified
for the program and
23,500 failed to respond
and were removed from
the Medicaid caseload,
though they could be ret-
roactively added back.
Despite those dis-
agreements, Allen said he
was pleased that the audit
OR-0000394452
was done and that they al-
ready have begun to im-
plement some of the au-
dit's recommendations.
"We look forward to re-
porting on our progress to
implement the recom-
mendations of the audit
and continue to improve
our business practices,"
said Laura Robison,
OHA's chief financial of-
ficer.
The audit also detailed
ways that, under previous
leadership, OHA delayed
providing information or
limited access to some
employees during the in-
vestigation.
Managers would tell
their employees not to re-
spond directly to an audi-
tor's follow-up questions,
including questions that
would take just minutes
to answer, according to
the report. It also indicat-
ed that auditors were di-
rected to speak with man-
agers who would end up
having less familiarity
with the information than
staff.
One example the audit
mentioned was when au-
ditors requested in Feb-
ruary a list of "carve outs"
used to perform some
testing, information they
didn't receive for five
months and was incom-
plete upon delivery.
But the audit also men-
tioned that since Robison
and Allen took over in
September,
timeliness
and access "dramatically"
improved.
Contact the reporter at
cradnovich@statesman-
journal.com or 503-399-
6864, or follow him on
Twitter at @CDRadnov-
ich.
Address
P.O. Box 13009
Salem, OR 97309
Phone
503-399-6706
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Privately owned cremation facility.
A Family Owned Oregon Business.
OR-SAL0007253-10
www.ANewTradition.com
closed permanently on
Nov. 18. Along with sell-
ing electronics, owner
Jason Freilinger and
manager Troy Carter
built a loyal gaming com-
munity, who gathered
regularly at the shop, at
218 E. Main Street, to play
“Dungeons and Dragons”
and “Magic the Gather-
ing.”
Samarai Madame, a
new takeout spot special-
izing in Japanese and
French provincial cook-
ing, opened Nov. 16. Own-
ers Marty and Mar’cia
Schrock, 20-year Silver-
ton residents, share cook-
ing duties. Mar’cia cre-
ates daily bowls – packed
with nutrient-rich foods
such as beef and butter-
nut squash or chicken
and vegetables over rice
– that cost $6 for students
and $7 for adults. Marty
makes a variety of maki
sushi, not all of which
contains raw fish. Cus-
tomers can take out from
the shop, located across
from City Hall at 202 Jer-
sey Street, or receive a
delivery at nearby Silver
Falls
Brewery
Ale
House.
A community fixture
since the 1970s, Clear
and Practical Account-
ing Solutions, moved on
Nov. 20 from its location
on 1st Street into the
building most recently
occupied by Almquist
Studio at 301 S. James
Street. Jon Haynes, busi-
ness owner since 2010,
bought the building to ac-
quire more space and get
away from working in a
two-story
location.
C.P.A.S. has four full-
time and one part-time
employees and special-
izes in tax preparation
and payroll services.
Haynes said he plans to
use the additional space
to hire more accountants
who can serve more cli-
ents.
Whimsy Etc., Silver-
ton’s homegrown bou-
tique gift and toy store,
sold last month to Kim
Knox, who also owns The
Chocolate Box. Former
owner Bonnie Lester
started the store more
than seven years ago,
briefly operated two
stores, and then com-
bined them under one
roof at 301 E. Main Street
three years ago.
Dominos
Pizza
opened at 703 McClaine
Street, on Nov. 1. Before
that, the closest fran-
chise was in Salem. Dom-
inos offers takeout piz-
zas, seating for 20, and
delivery within a 10-min-
ute radius. Managers
said deliveries reach just
past Mt. Angel. Its hours
are 10:30 a.m. to midnight
Sunday through Thurs-
day, and 10:30 a.m. to 1
a.m. Friday and Satur-
day.
Big news earlier this
Continued from Page 1A
P.O. Box 13009
Salem, OR 97309
Fax
Simple Cremation $595
Continued from Page 1A
year was the grand open-
ing of Silver Falls Brew-
ery Ale House. The
brainchild of Eric Drulin-
er and Andrew Fox, the
offsite brewery produc-
es beers named after
landmarks at Silver Falls
State Park, and the ale
house pours them – and a
score of guest beers, root
beer and cider – from 24
taps.
Located at 207 Jersey
Street, the ale house is
open to patrons of all
ages – not just those 21-
and-older – and executive
Donna Bahr keeps a se-
lection of games and ac-
tivities on hand for the
younger crowd. Food is
delivered onsite by Loco
Ono, a BBQ food truck, as
well as Old Oak Oven piz-
za and Madame Samarai
across the street. Hours
are 11:30 a.m. to 10 p.m.,
closed Tuesdays.
Bazaar Americana, is
a new shop at 208 E. Main
Street offering hand-
made and resale items.
Owners Tom and Darlene
O’Connor sell products
made by 15 local hand-
crafters, as well as a se-
lection of used and an-
tique items. They hold
classes in sign painting
and other crafting on
many Sundays. Tom can
also often be found play-
ing live bluegrass music
in the store. It’s open 11
a.m. to 5 p.m., closed
Mondays and Tuesdays.
Silverton
Art
&
Frame, at 105 S. 1st
Street, is in the hands of
new owners Scott Bruno
and Molly Moreland. The
partners spent six weeks
in training with former
owners Judi DeSantis
and Debbie Farmer. Be-
fore buying the business,
Bruno worked many
years in picture framing,
and Moreland was a dip-
lomat. Their shop offers
customer-focused,
hands-on framing, as
well as sells prints and
crafts, many by local art-
ists. Hours are 10 a.m. to 5
p.m. Monday through
Saturday.
The Next Treasure, an
antique thrift store, is a
dream-come-true
for
owner Brandy Apger,
who has been treasure-
hunting at garage sales,
estate sales, flea markets
and auctions since she
was a child. In her shop at
203 Oak Street, she offers
“antiques and oddities,”
all “with their own sto-
ries”
to
customers.
Hours are 10 a.m. to 5
p.m., closed Tuesdays.
A new Dollar General
store is slated for con-
struction in the spring. In
town, it joins another dis-
count franchise, Dollar
Tree, which opened in
September. Silverton’s
Planning Commission ap-
proved the proposed con-
struction of a 9,100-
square-foot store at 1095
N. 2nd Street, with drive-
way access off both 2nd
Street and First Street,
just south of Homeplace
Restaurant and Seven
Brides Brewing.
Shop
503-873-8385
LOW COST CREMATION & BURIAL
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President
Ryan Kedzierski
503-399-6648
rkedzierski@gannett.com
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503-399-6630
tmcarthur@Salem.gannett.com
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Historic
Silverton,"
Palmer said.
“It’s not just Silver-
ton,” Wallace added.
“The (Marquam Hill) al-
paca farm is on the Shop
Hop, and I never would
have gone out to the al-
paca farm. But now I
know where it is and that
they have a nice gift shop
that I like.”
Palmer said many out-
of-town guests will visit
Silverton, spend a day
shopping and then head
to a nearby Christmas
tree farm or to events at
Silver Falls State Park or
Christmas in The Garden
at The Oregon Garden.
“From our Christmas
tree lighting on Dec. 1 to
other community events,
I really feel like Silverton
is a joyous and festive
place to celebrate the
holiday season,” Palmer
said. “There’s something
quaint and wonderful
about seeing the shops
decorated and how wel-
coming the merchants
are that makes the holi-
days a bit more special.”
To learn more about
the Shop Hop and other
events in Silverton, visit
www.silvertonchambe-
r.org or call 503-873-5615.
jmuch@Statesman-
Journal.com or cell 503-
508-8157 or follow at twit-
ter.com/justinmuch