PEER Report #220

AN INVESTIGATION OF SELECTED AREAS OF OPERATION OF THE MISSISSIPPI STATE HOSPITAL AT WHITFIELD, August 22, 1989, 64 pages

PEER investigated allegations that Mississippi State Hospital did not comply with equal opportunity laws and had experienced supply shortages because of expenditures for renovating two executive residences.

The Department of Mental Health has systems in place to monitor fairness in personnel matters and address equal opportunity concerns at the State Hospital.

PEER found no evidence of embezzlement of public funds or property. The hospital received goods and services in return for its expenditures. However, these expenditures were not in compliance with state budget and accounting laws:

• The department expended $106,433 to renovate the residences of the Executive Director of the Department of Mental Health and the Director of the State Hospital, of which $98,471 was expended without proper legislative appropriation authority.
• Contrary to law, the hospital spent $28,194 for the houses prior to issuance of purchase orders.
• The hospital paid an interior decorator $8,348 to decorate executive residences and offices, although the contract approved by the State Personnel Director stated that the services were for “patient” buildings. ($22,693 of the $31,041 spent under contract was for patient buildings.)
• The hospital did not receive competitive bids for certain renovation expenses because the hospital permitted the decorator to solicit bids. As a result, the hospital received bids only from the decorator’s own firm and an associated firm.

While fiscal year-end supply shortages are not unusual at the State Hospital, $29,787 of the housing renovation expenditures could have been used to lessen the severity of commodity shortages.

For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.