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<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif";
color:#1F497D'>fyi. Has anyone seen this?<o:p></o:p></span></b></p>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif";
color:#1F497D'><o:p> </o:p></span></b></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'><br>
<b>Subject:</b> O'Malley-Brown Administration Mismanagement of $38 Million in
funds for the Disabled<o:p></o:p></span></p>
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<p class=MsoNormal><o:p> </o:p></p>
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<p class=MsoNormal><o:p> </o:p></p>
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<h2 style='margin:0in;margin-bottom:.0001pt;border-style:initial;border-color:
initial'><span style='font-family:"Georgia","serif"'><a
href="http://marylandreporter.com/2013/10/31/whistle-blower-at-disabilities-agency-fired-by-omalley-brown-administration-she-alleges/"
title="Whistle blower at disabilities agency fired by O’Malley-Brown administration, she alleges"><span
style='color:#FF2200;border:none windowtext 1.0pt;padding:0in;text-decoration:
none'>Whistle blower at disabilities agency fired by O’Malley-Brown
administration, she alleges</span></a><o:p></o:p></span></h2>
<div>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>October
31, 2013 </span><span class=post-time><span style='font-size:8.0pt;
font-family:"Arial","sans-serif";border:none windowtext 1.0pt;padding:0in'>at
1:03 am</span></span><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
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<p class=MsoNormal><em><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'>For two years, MarylandReporter.com
has been covering the financial problems with the Developmental Disabilities
Administration. <a
href="http://watchdogwire.com/maryland/2013/10/30/omalley-administration-fired-developmental-disabilities-admin-whistle-blower/"
target="_blank"><span style='color:#2057AF;text-decoration:none'>The following
story by Mark Newgent was published Wednesday evening on Watchdog
Wire-Maryland.</span></a> Rather than just linking to it, we are
publishing it in its entirety as it uses court documents to describe corruption
and fraud at DDA as alleged by a whistle blower later fired.</span></em><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'>By Mark Newgent</span></b><span
style='font-size:9.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'><a
href="http://watchdogwire.com/maryland/" target="_blank"><b><span
style='color:#2057AF;border:none windowtext 1.0pt;padding:0in;text-decoration:
none'>Watchdog Wire-Maryland</span></b></a><o:p></o:p></span></p>
<div style='margin-left:11.25pt;border-style:initial;border-color:initial;
float:right' id="attachment_19178">
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><a
href="http://marylandreporter.com/wp-content/uploads/2013/10/Whistle-by-Katerha.jpg"><span
style='color:#2057AF;border:none windowtext 1.0pt;padding:0in;text-decoration:
none'><img border=0 width=512 height=384 id="_x0000_i1025"
src="cid:image001.jpg@01CEDA69.1A0EC580" alt="Whistle by Katerha"></span></a><o:p></o:p></span></p>
<p class=MsoNormal style='background:#DDDDDD'><span style='font-size:9.0pt;
font-family:"Arial","sans-serif"'>Whistle by Katerha<o:p></o:p></span></p>
</div>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>At
the time advocates were lobbying for an alcohol tax increase to raise revenue
for the disabled, the Developmental Disabilities Administration knew about and
covered up <a
href="http://marylandreporter.com/2011/11/09/agency-left-38-million-unspent-on-disabled-people-needing-care/"><span
style='color:#2057AF;border:none windowtext 1.0pt;padding:0in;text-decoration:
none'>$38 million in unspent state and federal funds</span></a> from
fiscal year 2010, according to court documents filed by a whistleblower.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Carrie
Phillip, former Chief Financial Officer of the <a
href="http://watchdogwire.com/maryland/2013/10/15/more-problems-at-md-developmental-disabilities-administration/"
target="_blank"><span style='color:#2057AF;border:none windowtext 1.0pt;
padding:0in;text-decoration:none'>much-beleaguered agency</span></a> tasked
with administering services to Maryland’s disabled community, <a
href="http://www.scribd.com/doc/180318259/Phillip" target="_blank"><span
style='color:#2057AF;border:none windowtext 1.0pt;padding:0in;text-decoration:
none'>filed a complaint</span></a> in Baltimore City Circuit Court,
alleging she discovered and notified top agency officials about the unspent
funds, top officials in the Department of Health and Mental Hygiene ordered her
to hide the surplus funds in 2011, and that she was subsequently terminated for
blowing the whistle.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Phillip
also alleges she alerted her superiors about inadequate internal controls, and
agency staff doing work they were unqualified to perform.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>During
the 2011 legislative session, disability and public health advocates lobbied
for an increase in Maryland’s alcohol tax, citing a lack of funding and a
long waiting list of disabled residents needing services. They were
ultimately successful in increasing the state sales tax from 6 to 9 percent on
alcohol sales. DDA received $15 million of the extra revenue
generated.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Later
that year, DDA officials revealed they had discovered a $38 million surplus
from fiscal year 2010, $25 million of which had to be reverted to the general
fund.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Phillip,
a Certified Public Accountant with a Masters degree in accounting, alleges she
discovered and disclosed that DDA hid the $38 million, while the agency denied
services to the disabled to cut costs.<o:p></o:p></span></p>
<div style='margin-left:11.25pt;border-style:initial;border-color:initial;
float:right' id="attachment_8680">
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><a
href="http://marylandreporter.com/wp-content/uploads/2011/12/OMalley-sine-die-briefing.jpg"><span
style='color:#2057AF;border:none windowtext 1.0pt;padding:0in;text-decoration:
none'><img border=0 width=430 height=428 id="_x0000_i1026"
src="cid:image002.jpg@01CEDA69.1A0EC580" alt="Gov. Martin O'Malley"></span></a><o:p></o:p></span></p>
<p class=MsoNormal style='background:#DDDDDD'><span style='font-size:9.0pt;
font-family:"Arial","sans-serif"'>Gov. Martin O’Malley (file photo)<o:p></o:p></span></p>
</div>
<p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'>Whistle blower sent letter to Gov.
O’Malley</span></b><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>On
June 2, 2011 Phillip wrote a letter to Governor O’Malley detailing her
concerns.<o:p></o:p></span></p>
<p class=MsoNormal><i><span style='font-size:9.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'>The latest OLA audit speaks for
itself but it does not render a complete illustration of the issues. Auditors
rarely detect fraud and DDA’s uniqueness prevents auditors from acquiring
the feel for the substance of the thousands of unique transactions. As a
CPA I’m bound by a professional code of ethics and have a duty to report
the fraudulent contracts, fraudulent transactions, and fraudulent financial
reporting existing the organization. I will provide documentation if requested.</span></i><span
style='font-size:9.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><i><span style='font-size:9.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'>Without objective oversight,
exemption from procurement regulations has situated the foxes to guard the
henhouse. The staffing mix is incomprehensible for an organization with
an $800,000,000 annual budget and the financial reporting foundation of DDA is
built on unreliable data making what comes out of no value.</span></i><span
style='font-size:9.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><i><span style='font-size:9.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'>Within the organization, dishonest
acts are greeted with nothing more than raised eyebrows. The agency makes
multi-million dollar duplicate payments and does nothing to remediate the
situation. An ongoing practice of unauthorized interest free loans continues as
well as inflating payments to providers if they are in good favor and merely
ask for it or if it creates conveniences for DDA staff….</span></i><span
style='font-size:9.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><i><span style='font-size:9.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'>As troubling as this is, I enjoy my
profession and do not speak from the vantage point of someone with tunnel
vision or an axe to grind and request protection from the inevitable backlash
that will result from these disclosures. I’ve had the pleasure of
working for other state agencies and have not previously encountered anything
like this. I normally disclose questionable acts within the organization
but am being pressured to falsify documents and cannot do so. The power
at DHMH rests within a formidable network making change from within impossible
and elevating concerns is frowned upon. Therefore I’m pleading to
your administration for guidance.</span></i><span style='font-size:9.0pt;
font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Phillip
received no reply from Governor O’Malley’s office. The only
reply she received was four months later in a letter from, Joshua Sharfstein,
Secretary of the Department of Health and Mental Hygiene.<o:p></o:p></span></p>
<p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'>Health secretary thanks her and then
she is fired</span></b><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>On
October 7, 2011 Sharfstein wrote to Phillp that O’Malley asked him to
respond to her letter. Sharfstein noted that he had referred her concerns
to the department’s inspector general and that “the Governor
appreciates hearing from you and on his behalf, I thank you for bringing these
concerns to my attention.”<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>On
October 11, 2011, four days later, Phillip received a termination notice from
then-Developmental Disabilities Administration Executive Director, Franklin
Kirkland. <a
href="http://msa.maryland.gov/msa/mdmanual/16dhmh/html/dhmh.html"
target="_blank"><span style='color:#2057AF;border:none windowtext 1.0pt;
padding:0in;text-decoration:none'>Kirkland now serves as a special advisor</span></a> to
the Acting Director, Patrick Dooley.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>It
took the O’Malley administration four months to acknowledge
Phillip’s concerns, and only four days to fire her.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The
DHMH <a
href="http://dda.dhmh.maryland.gov/SitePages/Developments/April2012/OIG_DDA_Surplus_rpt.pdf"
target="_blank"><span style='color:#2057AF;border:none windowtext 1.0pt;
padding:0in;text-decoration:none'>Inspector General’s report was released
that month as well.</span></a><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The
next month, in November of 2011, news of the unspent funds broke in the
media. <a
href="http://marylandreporter.com/2011/11/09/agency-left-38-million-unspent-on-disabled-people-needing-care/"><span
style='color:#2057AF;border:none windowtext 1.0pt;padding:0in;text-decoration:
none'>Maryland Reporter’s story</span></a> quoted Senator Ed
Kasemeyer, Chairman of the Senate Budget and Taxation Committee saying of phone
conversation with Sharfstein, “After he called me, he fired the [chief
financial officer].”<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Phillip’s
allegations counter the narrative put out by agency officials that they were
responsible for catching the error, <a
href="http://dhmh.maryland.gov/docs/11-30-11_dda_fy_2010_br_testimony_sec.pdf"
target="_blank"><span style='color:#2057AF;border:none windowtext 1.0pt;
padding:0in;text-decoration:none'>particularly Shafstein’s testimony
before Kasemeyer’s committee later that month</span></a>.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Phillip,
according to the complaint, filed for an appeal of her termination. A
hearing was held, but no decision was rendered.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>On
October 16, 2013, Phillip emailed Governor O’Malley again, stating that
DHMH has not paid out her leave or other accrued benefits. In addition to
she says DHMH blocked her from attaining a similar position at another state
agency.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>In
the same email Phillip also states her disclosure of the unspent funds hampered
DHMH’s ability to “continue to funnel money to personal friends
using fraudulent and improper pass through contracts,” and
“unrecoverable and unauthorized multimillion dollar loans to their
friends.”<o:p></o:p></span></p>
<p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'>Complained to federal government
about Medicaid overbilling</span></b><span style='font-size:9.0pt;font-family:
"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Phillip
also indicates she was the originator of the complaint, which led to a federal
audit of DDA that determined the agency <a
href="http://watchdogwire.com/maryland/2013/09/17/md-developmental-disability-admin-owes-federal-govt-21-million/"
target="_blank"><span style='color:#2057AF;border:none windowtext 1.0pt;
padding:0in;text-decoration:none'>owed the federal government $21 million for
Medicaid overbilling.</span></a><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Her
accusations are in line with the string of negative audits DDA has received
from legislative auditors over the last several years, which portrays an <a
href="http://marylandreporter.com/2013/10/23/analysis-audits-show-problems-have-plagued-md-developmental-disabilities-admin-for-years/"><span
style='color:#2057AF;border:none windowtext 1.0pt;padding:0in;text-decoration:
none'>agency in turmoil.</span></a><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>In
April of 2010, Phillip sent an email to her superiors outlining serious
internal control deficiencies within DDA. “Internal controls are
lacking,” Phillip wrote. “Because there aren’t sufficient
adequately trained fiscal employees.” She argued that that
overseeing an operation the size of DDA, which has an $800 million budget,
requires “an appropriate compliment of subordinate supervisors.”<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Phillip
wrote that she routinely performed tasks suited for staff level employees,
leaving her little time to perform higher-level fiscal management duties.
“I’m performing staff level work that can’t be delegated to
current staff…I have to emphasize on the job training of members of the
unit will not compensate for a lack of business education and experience gained
thereafter.”<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>She
also noted many of her subordinate employees stall and freeze items because
they don’t know enough or that there is insufficient time to for her to
give hands on supervision. Phillip warned that auditors will find an
unacceptably high number of exceptions and that a deputy would be needed to
detect and prevent errors.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>In
June 2013, Sharfstein hired, through a no-bid $3.1 million contract, the firm
of Alvarez & Marsal, which specializes in fixing troubled organizations.<o:p></o:p></span></p>
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<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
border:none windowtext 1.0pt;padding:0in'><br>
<br>
<span class=apple-style-span>Read more: <a
href="http://marylandreporter.com/2013/10/31/whistle-blower-at-disabilities-agency-fired-by-omalley-brown-administration-she-alleges/#ixzz2jpFTNNvw"><span
style='color:#003399;text-decoration:none'>http://marylandreporter.com/2013/10/31/whistle-blower-at-disabilities-agency-fired-by-omalley-brown-administration-she-alleges/#ixzz2jpFTNNvw</span></a> </span><br>
<span class=apple-style-span>Under Creative Commons License: <a
href="http://creativecommons.org/licenses/by/3.0"><span style='color:#003399;
text-decoration:none'>Attribution</span></a></span></span><o:p></o:p></p>
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