Audit: SC disabilities board spent money ‘frivolously,’ likely violated FOIA
A new independent audit has uncovered what it says are chronic issues of mismanagement and abuse within the agency responsible for serving South Carolinians with disabilities and special needs.
Last month, the Legislative Audit Council released Part 1 of a scathing report, slamming the commission that oversees the Department of Disability and Special Needs for ongoing management issues, including inappropriate behavior, abuse of power and frivolous spending.
The audit’s release comes as state lawmakers discuss whether to dismantle the board completely and move it under the governor’s Cabinet.
“The current commission has overreached in its role, may have violated state law and have demonstrated inappropriate behavior,” the LAC report said. The commission “spends money frivolously for items solely for the commissioners. These are other indications that change is needed to the agency structure.”
The South Carolina Legislative Audit Council is responsible for conducting independent, objective performance audits of state agencies and programs at the request of the General Assembly for the purpose of optimizing the agency.
In the audit, LAC reported that from 2021 to 2022, the DDSN commission micromanaged the agency, was uncooperative toward its staff and likely violated the Freedom of Information Act by holding meetings via email. The audit also indicated that some commissioners abused their power by using their position in the interest of family members receiving DDSN services.
DDSN, which oversees the care of tens of thousands of South Carolinians with intellectual disabilities, autism and brain or spinal injuries, has long been a political issue as governors have attempted to grapple with problems at the agency.
Several years ago, The Greenville News reported on numerous problems in the agency, including a waiting list for services totaling nearly 8,000, and increasing rates of allegations of abuse, exploitation and neglect.
Constance Holloway, DDSN’s interim state director, said in an emailed statement the agency cooperated fully with the Legislative Audit Council, but declined to respond to the audit’s findings.
“DDSN cannot comment on the details of the audit, as it is a state government issue,” Holloway said. “We will continue monitoring this matter, and will follow all state laws as directed.”
In its recommendation to lawmakers, LAC said the DDSN commission should be eliminated and restructured as a Cabinet agency under the governor’s control, which follows a move last month where a Senate panel voted to advance a bill that would do the same.
This isn’t the first time senators have considered relocating the disability agency under the governor’s control. In 2017, legislators attempted to do the same but got hung up on details surrounding the relationship between the state and local disability boards, which contract with DDSN to provide services but are made up of local employees overseen by local boards.
The agency is currently governed by a seven-person commission, which is appointed by the governor with the advice and consent of the Senate. The commission hires the executive director.
“Some commissioners use their positions within the agency to access information and acquire assistance for their family members who are receiving services from DDSN,” the audit said. “It is likely that other consumers’ families would not have this level of access.”
In one instance, the report found that one commissioner inappropriately contacted an associate state director seeking to modify the commissioner’s disabled child’s Medicaid waiver.
The report also revealed questionable financial activity by the commission. Namely, from 2019 to 2021, auditors found that commission-related expenses, including travel reimbursements and per diem allowances, ballooned from $16,661 to $84,872.
“Reimbursements for a commissioner’s expenses are not always adequately documented,” the report said.
In their response to the audit, some commissioners challenged the council’s findings, arguing there’s more to the story.
“Commissioner (Barry) Malphrus maintains that the current seven-member commission is responsible for significantly more expenses due to the fact that it is fully staffed, whereas, prior to 2020, there were multiple vacancies on the commission,” the report said.
In addition, the audit indicated that the commission had engaged in frivolous spending by buying table cloths, picture frames for commissioners and a design of separate commission logo. The report also said that commissioners spent more than $10,000 to sound proof three conference rooms, including one where public meetings are held.
“Commissioner Richardson maintains that soundproofing was necessary, so the public could hear the commission over the noise in offices and hallways; the new tablecloths were necessary because the old tablecloths had spills and look awful,” the report said.
“Commissioner Malphrus maintains that the commission wanted to update DDSN’s logo to be more consistent with other state agencies in an effort to strengthen DDSN,” the report said.
DDSN employees, surveyed during the audit, said that the commission’s micromanaging was overburdensome.
South Carolina is the only state that has an independent disability agency governed by a commission, and there are fewer than 10 disability standalone agencies nationwide, according to the audit.
