Auditor General Jack Wagner: Potential for massive welfare fraud in PA

One of the reasons for the growing mistrust of government is the fact that there are so many documented examples of money being wasted or handed out without property accountability.

A new audit conducted by the Pennsylvania Auditor General has found that 45% of the payments in the Department of Public Welfare's Special Allowance Program were issued without documented justification.

From a press released issued today by Wagner's office:

Auditor General Jack Wagner said today that a Department of Public Welfare program that provides cash assistance to welfare recipients seeking employment was rife with mismanagement and poor oversight, creating an environment for potential fraud and abuse that could cost taxpayers tens of millions of dollars.

In a special performance audit released today, Wagner's auditors found insufficient documentation to justify 45 percent of the 3,201 special allowance payments examined. Specifically, auditors found insufficient documentation for 163 recipients totaling $564,700 in cash for clothing, child care, tools, transportation and other expenses.

Wagner said his concern over potential fraud stemmed, in part, from the fact that DPW has acknowledged potentially fraudulent handling of special allowance funds in Philadelphia and reported cases to the Office of Inspector General for further investigation.

"With the commonwealth facing its greatest budgetary challenges since the Great Depression, all of us in state government must do everything we can to stretch every dollar and eliminate the potential for waste, fraud and abuse," Wagner said. "Department of Public Welfare management must provide greater leadership and be held accountable for its mishandling of taxpayer dollars, and must ensure that these vital funds are not wasted and are used appropriately so that these funds are available to assist some of Pennsylvania's most vulnerable citizens who are eligible and truly need the benefits."

Read the full release at the link below:

Auditor General Jack Wagner: DPW's Special Allowance Program Rife With Mismanagement, Potential for Fraud