Mo. Audit Faults Billing for New Telephone System

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JEFFERSON CITY - Missouri Auditor Tom Schweich says the state lost out on nearly $1.3 million because of how the Office of Administration has billed for a new telephone system.

The Jefferson City News Tribune reports the Office of Administration was supposed to determine costs for the phone system and charge state agencies for their share. Money would be deposited in a revolving fund and bills paid from that fund.

However, auditors say the Office of Administration did not collect enough money from the agencies and instead used money included in its budget. Because of the under-billing, auditors say state agencies could not seek federal reimbursement for the costs. Auditors recommend charging the agencies for reimbursement.

The Office of Administration warns the recommendation could violate federal regulations.