Auditors found a $576 million accounting error in two Department of Social Services budgetary accounts.
The discrepancies showed up in an audit of the Treasurer’s responsibilities for overall state financial operations.
“Our review disclosed that the Department of Social Services had drawn down funds in excess of its spending authority totaling $576,816,262 in error for two of its zero balance accounts,” the Auditors of Public Accounts said in their report.
“This was a non-cash matter, and in no way was there any over-spending beyond appropriated amounts,” a spokesman for DSS said. “Our accounting records related to the cashbook account were correct and no adjustments to those records were required.”
The auditors said “misapplication of procedural changes” caused the errors and faulted the department, the Treasurer’s cash management division and the Comptroller.
According to DSS, the procedure changes that led to the error have been reversed.