PEER Report #249

A REVIEW OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION’S DISPOSITION OF THE STATE’S CHARITY HOSPITALS’ ASSETS, October 16, 1990, 25 pages

During the 1989 session, the Legislature mandated the closure of the state’s charity hospitals, effective July 1, 1989. MISS. CODE ANN. Section 41-11-11 gave the Department of Finance and Administration (DFA) responsibility for disposition of charity hospitals’ property, but did not specifically address how the department should implement and administer the property disposition requirements of the law. Although DFA’s transfers of hospital buildings and land complied with statutory provisions, PEER determined that:

• DFA did not clearly establish property disposition duties and responsibilities.
• Neither the State Auditor’s Office nor DFA established an accurate physical inventory of charity hospitals’ property (valued at approximately $2,687,398).
• DFA’s failure to secure and control access to each hospital’s property contributed to alleged theft.
• DFA did not establish property disposition criteria.

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