(WXYZ) – A 40-page audit is exposing questionable expenditures made by the Department of Human Services.
Now, Michigan’s Auditor General is looking into the financial practices of the Department.
Conclusions drawn from the audit accuse the department of mismanagement and improper accounting procedures that could add up to millions of dollars in taxpayer money.
Specific examples include, conflict of interests when agency employees sold cars to welfare clients who were their own relatives, people who could both create and process invoices.
Hundreds of thousands of dollars in misspent gas and gift cards are also being looked into because there were no restrictions on usage.
In one instance, 55 Walmart gift cards were purchased for $500 a piece all in one day.
The auditor studied the Department of Human Services records and procedures concluding that DHS “had not established effective internal control for granting and monitoring access.”
The Director of Accounting at the department tells Action News that they will not tolerate any misuse of taxpayer money and that they are addressing the issues at hand.
They say nobody has been disciplined because no policies were broken at the time.
The State Senate plans on holding hearings on the issue in the fall.