St. Louis Health Department's Ills Are Uncovered in Audit

The St. Louis Health Department lost $207,000 in federal money for HIV/AIDS services and nearly forfeited an additional $3 million because it failed to file paperwork in a timely fashion to be reimbursed. Accounts of shoddy bookkeeping and other disclosures were made Friday in a report by an accounting firm hired by the city to look at the workings of the department and make recommendations on how to better handle its finances. No one seeking HIV/AIDS services was turned away due to the loss of the money, city officials said, but the city had to pay for the services because the federal government refused to compensate the Health Department after it missed reimbursement deadlines.

The accounting firm also reported that 40 of the 44 grants that provide $12 million for the Health Department each year were not in compliance with state reporting requirements, which could have jeopardized receipt of the money by the department. When the firm began its review in April, it found 320 unprocessed invoices -- most more than three months old -- totaling $180,000. Checks either were not endorsed when received or immediately deposited, and they were not kept in a secure place until they could be taken to the bank, according to the report. Comptroller Darlene Green, who oversaw the outside review, said Friday that the $269,000 the city paid Rubin, Brown, Gornstein & Co. was worth it because it ultimately saved the city $3 million. Green said the problems in the Health Department's fiscal office had been corrected and the office was now running more efficiently.

Health commissioner Melba Moore, who worked closely with the firm during the review, said she was pleased with the results. Currently, all 44 grants are in compliance with state reporting requirements, according to the report. As a result of the review, the department now receives grant money by wire transfer rather than by check, and all invoices are now processed within three to five days, Moore said.

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