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State Agencies Target Millions In Savings Following Independent Audits

WV Legislative Photography David Kelly, commissioner for the West Virginia Division of Corrections and Rehabilitation, said the use of body cams for correctional officers would have an up-front cost but would result in savings in the long-term due to reductions in lawsuits brought by inmates.

CHARLESTON – Officials leading several West Virginia departments and agencies briefed lawmakers Monday after audits released last month by Gov. Patrick Morrisey found more than $168 million in potential savings.

Members of the West Virginia Legislature settled into the mountains of Tucker County for three days of interim meetings at Canaan Valley Resort State Park in Davis beginning Sunday and wrapping up today.

While lawmakers went on tours of Dolly Sods, the National Youth and Science Academy, the Bowden State Fish Hatchery and other areas, joint committees of the state Senate and House of Delegates held meetings.

The Joint Standing Committee on Finance met Monday morning, where members received a briefing on general revenue fund tax collections and an update from officials with the Division of Corrections and Rehabilitation, the Department of Transportation and the Department of Human Services regarding audits of their offices.

During a May press conference, Gov. Morrisey announced the results of the audits undertaken following executive orders he issued shortly after taking office last year. Executive Order 5-25 ordered all cabinet secretaries and department heads to perform comprehensive reviews and identify areas of inefficiency or wasteful spending and submit those findings to the Governor’s Office within 60 days of the executive order.

The state also contracted with BDO USA for department and agency audits, costing taxpayers approximately $1 million. According to Morrisey, the audits of executive branch services and four specific departments found more than $168 million in savings.

BDO focused on auditing three major areas of the executive branch: the Department of Homeland Security, which supervises the Division of Corrections and Rehabilitation; the Department of Transportation; and the Department of Human Services.

BDO identified approximately $39.4 million in recommended improvements for Homeland Security, including investments in better pay and working conditions, updating grant management systems, automating data entry and digitization, streamlining hiring procedures, eliminating overlapping services, simplifying purchasing processes, relocating an operations center, and the use of bodycams by correctional officers.

Corrections and Rehabilitation Commissioner David Kelly said his agency is prioritizing technology – specifically body cameras and automated security systems – to mitigate high litigation costs caused by inmates bringing use-of-force lawsuits.

“When I was appointed to the position of commissioner almost a year ago to the day, one of the things that I wanted to address … was the high cost of litigation that we were facing as a division,” Kelly said. “DCR leadership, from the top to bottom, are looking at our training, our use of force policies, facility safety, deferred maintenance and the implementation of technology within operations to reduce these costs and maintain a safer environment for both the staff and the inmate offender population.”

These measures require up-front investment for equipment and software support, which Kelly said do not yield immediate budget reductions. The initial body cam purchase is $1.8 million, and another $500,000 for software maintenance. Additional requested funding was not provided by the Legislature, but Kelly said DCR was applying for multiple grants to help cover costs.

“The body cameras, as you know, will cut down on the use of force (claims), and it does two things: It protects our good officers, and … it will reveal those who aren’t doing their jobs,” he said. “It also protects our inmate population, and it will also reveal to courts those that need to be prosecuted for things they’re doing if they’re doing it inside a jail.”

BDO found $50.6 million in recommended improvements for the Department of Transportation, including ways to improve contractor oversight and accountability, simplifying computer systems, reducing reliance on consultants, updating Division of Motor Vehicles systems and procedures, and automating accounts receivable by centralizing accounts.

According to Transportation Secretary Todd Rumbaugh, $33 Million of that $50.6 million would come from eliminating “dirty permits” – contracts issued before environmental, railroad or utility clearances are finalized. Rumbaugh said DOT aims to stop paying millions in idle-time delay claims to contractors under the Roads to Prosperity road bond program.

“During Roads to Prosperity, there was so much work out that they started putting out what we call dirty permits,” he said. “In an effort to get the work out, they were putting out permits where those things were not clear. There were dates put in the contract that said it would be clear by this date, and then what happened when we got to construction was those dates weren’t met. And when that happened, the contractors had to shut down, and they sat idle and waited and waited and waited until we got a railroad permit.”

BDO provided recommendations to the Department of Human Services totaling nearly $68.4 million in savings. These included finding ways to reduce reliance on out-of-state services for foster children, replacing outdated technology, fixing the Medicaid verification process, updating grant management systems and cutting postage and mail costs.

Acting Secretary Christina Mullins said the largest savings, $25 million, would come from reducing reliance on out-of-state residential providers. She said this will require a three-to-five-year timeline to build in-state capacity.

“The department continues to work to reduce its reliance on out-of-state providers,” Mullins told lawmakers. “We are actively reviewing existing properties that the department owns across West Virginia to establish additional services. This recommendation demonstrates why it is so important that we bring children back to West Virginia for services. We would like to continue to work with you on this important initiative, as we do need your help.”

Steven Allen Adams can be reached at sadams@newsandsentinel.com.

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