Review: Northeast prison system could save money with better processes | Community

“We take the recommendations in this comprehensive audit report seriously,” said Rob Jeffreys, director of the department. “During the audit period, the agency was in the process of implementing many of these changes, and we will continue to evaluate and modify processes to increase efficiency.”

State Auditor Mike Foley credited the Nebraska Department of Correctional Services for efforts to address the costliest problem: $3.5 million lost because not all eligible inmates applied for Medicaid.

That's important because both federal and state taxpayers share the cost of medical care for inmates who are eligible for Medicaid insurance. Foley said the corrective action could save “several million” dollars.

Since the audit, all eligible prisoners have applied for Medicaid upon admission to the prison, the department said in its response to the audit. The state also said it is working to recoup funds for the missed payments.

The audit found problems with Blue Cross Blue Shield's verification of health insurance claims through the prison system, and said it needs to more rigorously verify the accuracy of claims and payments.

In one case, the state paid a $2,985 claim for medical services an inmate received after his release, the audit said. Department officials said they would review insurance claims and payments more closely.

Foley's office noted that there were delays in crediting about $530,000 in direct deposits for work while incarcerated. Prison officials said they were working on a new data collection system to remedy the situation.

Inmates earn between $0.53 and $1.55 an hour and between $1.26 and $8.69 a day, according to the investigation. Corrections officials said they are trying to train more staff, blaming shortages and technology for the problems uncovered by the investigation.

Prisoners are allowed to keep part of their earnings and send part to their families. They must also contribute to the state's room and board costs and pay into a fund that helps their victims.

A random audit of the so-called “support fees” that the department charges inmates also found that it appears to have under-collected $310,000 from prisoners due to higher minimum wage payments.

Department officials said they are working to adjust fee rates and costs to reflect inflation, higher base salaries and other factors, and will review them more frequently to bring them into line with state law.

Problems in the pharmacy and overtime

An audit of the state prison pharmacy revealed a lack of formal explanations for manually recorded inventory adjustments, suggesting that some medications had disappeared and were not recorded.

Ministry officials said they would review and tighten controls over who has access to pharmacy records and how they are stored, to ensure there are electronic records that are harder to alter without leaving a trace.

A corrections department audit again highlighted the state's urgent need to hire more prison staff, pointing to about $22 million in overtime payments and too many employees working too many hours.

Officials said they are working to require fewer employees to work as much overtime, but stressed that the safety of inmates and other staff often dictates what they can do.

The auditor also found that there were ongoing problems with overpayments to current and former employees. One employee who left the company was overpaid nearly $18,000. The state said it is working on better procedures.

“No one can deny that leading the Department of Corrections is anything but an enormously demanding job,” Foley said in a statement. “However, there is always room for improvement.”

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