Mental health care and a financial scandal

Editorial by Rocky Mount Telegram, June 5, 2015.

Allegations that the former chief financial officer of a giant mental health services agency took kickbacks and misspent tax dollars underscores problems at the agency, obviously, but also with the way North Carolina treats people with mental disabilities in general.

As Telegram staff writer Lindell Kay reported earlier this week, State Auditor Beth Wood found plenty of discrepancies in Eastpointe Human Services’ financial dealings. Wood’s audit charged that a former CFO spent $18,600 in public money to buy a tractor and trencher for his home. He’s also alleged to have taken more than half a million dollars in kickbacks from contractors who were paid $1 million to renovate public buildings.

The audit doesn’t name the CFO, but records show that Bob Canupp was in charge of finances during the period in question. Wood has turned over her findings to the State Bureau of Investigation, the Internal Revenue Service and the N.C. Department of Revenue.

To its credit, Eastpointe initiated proceedings two years ago with an internal investigation that triggered Canupp’s dismisal. The agency reported the irregularities to Wood’s office, which spurred the state audit.

Eastpointe serves people with mental disabilities in 12 counties, including Nash and Edgecombe. It receives more than $175 million a year – mostly federal tax dollars – to provide services for people on Medicaid or people who don’t qualify for government health insurance.

The size and scope of the agency makes you wonder why the financial irregularities didn’t catch the eye of a governing body. Imagine if Eastpointe hadn’t noticed the discrepancies, or worse, if it had chosen not to bring in state investigators.

North Carolina has run into issue after issue since downsizing state mental health services in favor of outsourcing to private contractors. Until the governor and the N.C. General Assembly tackle the giant mess that plagues mental health care, stories like the one at Eastpointe shouldn’t surprise many people.

http://www.rockymounttelegram.com/opinion/our-views/mental-health-care-and-financial-scandal-2898125