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Contact: Orlando Canto, (608) 266-7553
DWD RESPONDS TO MAXIMUS REVIEW
MADISON Department of Workforce Development Secretary Linda Stewart said today that it was the departments vigilant efforts at monitoring and oversight that identified concerns about MAXIMUS employment practices, cost controls and organizational make-up, resulting in DWD withholding or recouping $7.6 million in payments to the company.
DWD already has received a check to the State of Wisconsin covering the amount of unallowable costs identified in the audit. Department officials said they welcomed the audit.
"The Department of Workforce Development has been aggressively looking into its contract with MAXIMUS since January," Stewart said. "The Audit Bureaus report provides independent confirmation of our findings and conclusions to date and supports our decision to continue our own intensive review."
"We have also been working with MAXIMUS to ensure continuous improvement in its financial practices," Secretary Stewart stated. "It is unfortunate that these improvements, as well as our strong efforts over the past seven months to address identified concerns, were not adequately reflected in the Audit Bureau report. As a result, the report includes recommendations that have already been implemented by DWD and MAXIMUS."
DWD will incorporate the findings of the Audit Bureaus report into its ongoing efforts to ensure questions about MAXIMUS business practices and expenditures are fully addressed. "As was the case prior to the reports release, we intend to take any and all appropriate actions against MAXIMUS in order to ensure all identified concerns are resolved," stated Secretary Stewart.
DWD has contracted with an independent audit firm to conduct a comprehensive audit of MAXIMUS in order to identify any inappropriate conduct during the life of the companys contracts with DWD for the delivery of W-2 services. The comprehensive audit, which DWD decided to pursue in May as part of its oversight process, is to be completed by October 2000.
"Although the report contains some minor errors and omits details regarding DWDs oversight activities to date, it will nevertheless be of great help to have this independent review in hand as we continue to work with our auditors to complete our comprehensive review of MAXIMUS," Secretary Stewart concluded.
NOTE: A chronology of actions taken since January 2000 to identify and address concerns related to MAXIMUS finances and operations is attached.
Chronology of Actions Taken Since January 2000
The following summarizes the actions taken since January 2000 to identify and address concerns related to MAXIMUS finances and operations:
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Content Contact: Orlando Canto