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Auditor General alleges poor financial recording for state health, family services

BY THE ASSOCIATED PRESS

Wednesday, June 18, 2008 1:00 PM CDT

SPRINGFIELD — Illinois' healthcare agency is under fire again from state auditors, this time for slow and sloppy management of financial records.

Auditor General William Holland's office on Wednesday found 15 problem areas in its annual review of the state Department of Healthcare and Family Services.

Holland says the department was months behind in reporting its financial statements for last year, and what it did report had some serious flaws — including an understating of tax revenue by $600 million.

It comes about a month after a special audit requested by lawmakers found a myriad of problems with how the agency handles Medicaid payments.

The department says its financial delays were caused by a long wait for legislative approval to spend money from a tax on hospitals that draw federal assistance.