N.C. mental health center audit reveals messy finances | HamptonRoads.com | PilotOnline.com

Before the state took control of it early this year, the Albemarle Mental Health Center was $2 million in the red and its finances were in such shambles that it was doubtful the entity had the ability to survive, according to a recently released independent audit.

The audit for fiscal year 2007- 08 showed that the 10-county agency had wiped out its fund balance, had put thousands of dollars designated for retirement costs in the general fund and had used Medicaid reimbursement funds intended for private provider services to pay other bills.

“What they were doing was grabbing any money they could in order to stay afloat,” said Jim Jarrard, chief of the Resource and Regulatory Management section of the North Carolina Division of Mental Health, Developmental Disabilities and Substance Abuse Services. “They overspent in just about every one of the areas of their budget, and they did not do budget revisions until after the fact.” Story continues here ➤