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GAO report cites state lack of accountability for stimulus funds

By Summer Harrison, on September 26th, 2009

A report by the Government Accounting Office released Wednesday raises concerns about states’ use of stimulus funds, citing “internal control deficiencies”. The report notes the “possible risk for the quality and reliability of these data” received from the states.

The three recommendations made in the report all center on the need for “clearer accountability for recipient financial data”.

The report doesn’t mention that three states are under some sort of federal investigation for matters related to mis-use of stimulus funds intended to be spent on Medicaid. Civil suits are pending in six states with a seventh in progress, also all related (although indirectly) to mis-use of Medicaid stimulus funds.

Those of us whose lives touch the disability community have been well aware for months that states have been targeting certain Medicaid populations for massive budget cuts.

The fact these cuts are proceeding while billions of stimulus dollars sit in state bank accounts is appalling.

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