Highlights of Auditor General Robert P. Casey, Jr.'s Record

January 1997 - January 2005

 

"Auditor General Robert Casey has earned a reputation as a fiscal watchdog who isn't afraid to sniff out wasteful spending and expose it to public light."

Easton Express-Times, July 3, 2003



"Fortunately for Pennsylvanians...their top watchdog has delivered a solid performance.  He has scoured government for waste and done some good work gauging the effectiveness of programs and policies."

Philadelphia Inquirer, October 16, 2000



"Bob Casey, Jr. has been an unusually effective auditor general."

Pittsburgh Post-Gazette, October 24, 2000



Experience    .    Integrity    .    Independence    .    Results

       As Auditor General, Bob Casey was not only a tenacious fiscal watchdog, he was an innovative and activist Auditor General.  During his two terms, he dramatically expanded the role of the Auditor General beyond just evaluating whether state tax dollars were spent according to law, to whether state agencies and those doing business with the state were using public funds effectively and in the most efficient manner.  At the same time, he became one of Pennsylvania's most forceful advocates for working families, for young children, and for older Pennsylvanians.

       Bob Casey's work as Auditor General will have a lasting impact.

       His unprecedented performance audits and hard-hitting investigations slammed the brakes on reckless state spending totaling tens of millions of dollars and prompted historic changes in public policy.  

       Many of these changes would never have happened if Bob Casey hadn't personally recommended them and aggressively fought for them.  Rather than simply curse the darkness, Bob Casey consistently recommended detailed solutions to state officials that have made life better for countless Pennsylvanians.

       The courage and independence that drove Bob Casey's crackdown on waste, fraud and abuse ruffled a lot of feathers - especially among Harrisburg insiders.  On the very day in May 1999 that Bob Casey exposed a $400 million stockpile of federal child care funds for low-income working families, the Governor and his allies in the General Assembly passed legislation restricting the Auditor General's authority.  Bob Casey plowed forward anyway - unintimidated by this brazen attempt to muzzle the Commonwealth's only independently elected fiscal watchdog.  

       He continued to battle the entrenched bureaucracy and special interests in Harrisburg.  Bob Casey spent years fighting for the right of the Department of the Auditor General to audit Pennsylvania's two largest public pension funds.   The funds had not had an independent performance audit of their operations in over 25 years, despite having some $85 billion in assets.  Finally, in April 2005, after Bob Casey had won several rounds in Commonwealth Court - and the Court had confirmed the Auditor General's legal authority to conduct performance audits - the two funds agreed to a settlement which allowed the audits that Casey fought so hard for to be performed.  

       For eight years as Auditor General, Bob Casey spent his time "kicking open doors and shining his searchlight into seldom-seen corners of state government," as the Bloomsburg Press-Enterprise described it in 1998. "It's precisely what auditors are elected to do, but too few are willing to take the heat."



"Mr. Casey's work as an independent fiscal watchdog for state taxpayers is impressive."

Allentown Morning Call, October 23, 2000



  Bob Casey's discovery of reckless spending and lax oversight in the state's Purchasing Card Program prompted Governor Rendell to enact changes that saved taxpayers millions.  Five performance audits between 1998-2004 found abusive, improper and inappropriate purchases; purchases that violated state procurement requirements; purchases that were not approved, documented or reviewed; lax security controls over purchasing cards; no record or inventory of items purchased; and lax Budget Office oversight.

For example:

•  PennDOT wasted hundreds of thousands of dollars on fancy catered meals, frivolous novelty items, and executive business accessories.  One employee was indicted after Casey discovered that she had used her purchasing card to wrongfully obtain tens of thousands of dollars in goods and services.

•  The Department of Agriculture squandered thousands of tax dollars on fine china, gold-plated utensils, crystal glassware, and fresh flowers.

•  The Department of Conservation and Natural Resources used state VISA cards to buy digital cameras, Halloween costumes and three Smokey Bear outfits, including a $2,400 one equipped with a cooling unit and fur feet.

•  A top Labor & Industry official was fired after Casey found he had racked up nearly $200,000 in purchase card charges that were inappropriate, unjustified and wasteful.  His flagrant misuse of tax dollars included at least 1,000 personal cell phone calls, casino trips and novelty clothing.

  Bob Casey found that over $3 billion in state contracts were awarded to 1,800 firms that owed taxes and other liabilities to the Commonwealth.   In one case, PennDOT paid nearly $2 million to one contractor after he was banned from state projects for fraudulent billing practices.

•  Bob Casey exposed a cover-up and reckless spending at the State Lottery that cost Pennsylvania seniors millions and led to the resignation of the Lottery's Executive Director.  Casey's investigation also found glaring weaknesses in the overall management of Lottery operations and a blatant disregard for sound business practices.  Casey offered 15 recommendations to improve oversight and restore public confidence in the Lottery - an important state program that benefits older Pennsylvanians.

  Bob Casey uncovered sweetheart deals and abuses totaling nearly $5 million in three special audits of the state's procurement process.   Political cronies of the Governor were rewarded with sole source, no-bid contracts and lucrative land deals.  

  He found over $3.5 million in Medical Assistance payments to people who were ineligible for the program because they were either incarcerated or dead.

  He exposed the Department of Labor & Industry's appalling lack of oversight and enforcement of Pennsylvania's prevailing wage law.  His performance audit found that L&I routinely destroyed complaint files in violation of its own records retention policies; had no legitimate or accurate means to track prevailing wage complaints or their resolution; and provided little or no oversight of the investigative process.  Documentation was so poor that L&I could not verify whether workers who filed prevailing wage complaints ever received the money they were owed.

  He conducted a performance audit of the Kvaerner/Philadelphia Naval Shipyard project that exposed an economic development deal worth nearly half a billion dollars in government largesse and millions of tax dollars in extravagant, wasteful perks for foreign executives, including European vacations, luxury cars, and even a $2,000 swing set.  Casey offered 45 recommendations to protect taxpayers and workers in future economic development deals.

  He conducted an investigation of the Ben Franklin Technology Center of Western Pennsylvania that found millions of dollars intended for technology grants to small businesses were, in fact, spent on luxurious vacations, gourmet meals, fancy parties and gifts.  A follow-up review found that many of Casey's 15 recommendations to improve oversight of the program had been implemented. The Center's former CEO and Vice President - whom Casey said led a "wildy extravagant, grossly self-indulgent life" - served federal prison time for their crimes.

  Bob Casey prompted PennDOT to eliminate extravagant employee recognition programs after an audit found they cost taxpayers $700,000 in one year alone.

  He conducted a special audit of the Department of Conservation and Natural Resources' State Park Reservation System that exposed the agency's poor management, cost overruns, lax security and delays.  These problems resulted in nearly $500,000 in unnecessary costs.  Another audit uncovered a questionable real estate deal that benefited the mother-in-law of a top DCNR official.

  He conducted an investigation that found the Department of Public Welfare paid over $500,000 to a firm that failed to provide adequate security at a vacant state hospital.

  Casey's auditors uncovered two corporate tax errors totaling nearly $1.3 billion.

  Bob Casey found that Northwest Pennsylvania Technical Institute awarded degrees and technical skills certificates to just 119 students over 10 years, despite receiving nearly $35 million in state funds to provide crucial job training to 40,000 adults.

  His 1998 investigation of Lincoln University found hundreds of thousands of dollars in mismanagement and waste and misuse of University employees and resources for personal gain.  It also documented a pervasive disregard for sound business practices and school policies.  

•  Bob Casey prompted reforms in Philadelphia Traffic Court after an audit found that the Court failed to collect 80% of fines and penalties - nearly half a billion dollars - on outstanding traffic violations in a three-year period.  

  He urged the Public Utility Commission to improve its consumer complaint hotline after a performance audit found that 90 percent of more than seven million customer calls went unanswered.

  He called for the hiring of additional prison guards after an audit found that overtime in state prisons cost taxpayers more than $25 million a year.

  He conducted a special investigation of the Hazardous Materials Management (HazMat) Program which found waste, misuse of funds, and mismanagement at both the state and local level.

  He conducted a special audit that found apparent conflicts of interest in the Department of Environmental Protection's "Growing Greener" grant program.

  Bob Casey conducted a joint investigation with the District Attorney of Beaver County that led to hundreds of counts of theft totaling nearly $50,000 against the former Executive Director of Family Services of Beaver County, Inc.  He was sentenced to two years probation and agreed to pay restitution to the agency.

  He exposed an $11 million stockpile of public funds in the Harrisburg Volunteer Firefighters' Relief Association.  The VFRA refused to disclose its members to auditors, but counted among them men who belonged to a fire company that closed 63 years ago.  Several other Casey investigations of VFRAs uncovered tens of thousands of dollars in waste, fraud & abuse.



"He's a solid advocate for Pennsylvanians and fiscally responsible government."

Philadelphia Inquirer, October 16, 2000



  Bob Casey took the state's two largest public pension funds - the State Employees' Retirement System (SERS) and the Public School Employees' Retirement System (PSERS) to Commonwealth Court to force their compliance with a performance audit of their investment operations.   Throughout a nearly three-year legal battle, Casey had the backing of the House of Representatives, dozens of newspaper editorial boards, and retiree groups.  In November 2003, Casey won a major victory when the Court unanimously rejected the Funds' argument that the Auditor General lacked the legal authority to conduct performance audits.  The lawsuit was finally settled in April 2005 (after Casey took office as State Treasurer and became a member of both Funds' boards) when the Funds agreed to settle the lawsuit and allow a performance audit of their investment operations to be conducted.

  As early as July 2002, Casey urged the Governor and the State Treasurer to join him in developing a new state policy to protect Pennsylvania investors and billions of dollars in state investments from the devastating effects of conflicts of interest which may develop when financial firms provide both investment advise and investment banking services.

  At Casey's urging, the SERS Board in November 2002 adopted investment protection principles to better protect state taxpayer and retirement funds.  The adoption of these principles sent a strong message to investment advisors and money managers doing business with the pension fund that they are expected to adhere to the highest ethical standards.

  Bob Casey in 2002 also called on the Governor to strengthen Pennsylvania's Contractor Responsibility Program to provide for the debarment or suspension of any state contractor that violates federal or state securities laws.  Casey specifically urged the Governor to deny state work to any company that engages in accounting fraud, misstates its earnings or issues erroneous financial statements.

  He launched a new audit program that found $7.3 million from the Tobacco Settlement Fund was improperly paid to hospitals for uncompensated care services.  At the same time, Casey identified several hospitals that were underpaid $4.3 million for certain eligible expenses.  Casey recommended - and the legislature agreed - that the remaining $3 million would be used to reduce the waiting lists for the Commonwealth's subsidized health insurance plan for low-income adults.

  In 2003, Bob Casey questioned the actuarial soundness of Pennsylvania's Tuition Account Program (TAP) after an audit he conducted at the request of the State Treasurer found that the TAP fund had:

·  a $26 million deficit;
·  a $40 million loss in net assets; and
·  liabilities resulting from new business that exceeded by $8    million the assets and income provided by this new business.

  Bob Casey warned that TAP's future competitiveness may be threatened if it continued to accrue significant unfunded liabilities which it then attempted to eliminate through the imposition of new fees on the sale of tuition creditsWithin weeks of Casey's audit, the State Treasurer announced that TAP's actuarial deficit had doubled to $52 million and she would re-instate premiums of up to 9 percent on the purchase of TAP credits.

  Bob Casey exposed the fact that the Ridge administration's Department of Community and Economic Development grossly overstated export sales and new jobs attributed to its foreign trade missions and international trade offices.  In fact, the administration's claims about increased export sales and new jobs in Pennsylvania as a result of international trade activities were completely unsupported.

 He conducted a performance audit that found the Department of Public Welfare did not have accurate records to document more than $8 billion it spent on medical care for low-income families enrolled in the HealthChoices managed care program.

  He exposed the Department of Education's shocking disregard for sound business practices in its award of a $2.7 million, no-bid contract to Edison Schools, Inc. to analyze the Philadelphia School District.

  He conducted a performance audit of the state's Community Revitalization Program which found that the program was not competitive and that no criteria were used in awarding millions of tax dollars to legislators' pet projects.

  He offered several recommendations to improve accountability at the Port Authority of Allegheny County after his audit found that the Authority wasted $561,000 when it awarded and then terminated a $4 million contract with a California company to implement and maintain an automated work order system for bus maintenance.  The Authority decided it could do the work itself.  Casey's audit also exposed unnecessary waste, lax oversight and lost equipment at the Authority.



"Mr. Casey's advocacy for Pennsylvanians of all ages is admirable."

Allentown Morning Call, October 23, 2000



  Bob Casey conducted a performance audit that found that the Board of Probation and Parole lost track of nearly 1,600 paroled prisoners under its supervision; imposed meaningless sanctions on violent offenders; and failed to meet its own supervisory requirements in 90 percent of the cases sampled.

  He created the Commonwealth's first-ever Minority and Women Business Enterprise (MBE/WBE) Task Force to promote legislative and policy reforms to expand access to state government contracting opportunities.

  Bob Casey created this MBE/WBE Task Force after a performance audit he conducted found that the Commonwealth was doing little or nothing to help minority- and women-owned businesses secure state contracting work for which they were qualified.  Out of $5.8 billion in state contracts awarded during a two-year period, Casey found that only 4 percent went to minority- and women-owned firms.  As part of his audit, Casey offered over 40 recommendations to help level the playing field and improve state oversight of the MBE/WBE Program.

  Bob Casey's audit and the work of his MBE/WBE Task Force laid the foundation for Governor Rendell's ongoing reforms to the Commonwealth's MBE/WBE program.  The Governor was so impressed that he hired one of Casey's top deputies to implement the changes and appointed Casey to his Ad Hoc Advisory Committee on Minority- and Women-Owned Business Opportunities.

  Bob Casey helped Governor Rendell improve the state's workforce development system after his performance audit found that hundreds of millions of dollars in workforce development spending had failed to provide Pennsylvania workers with the education, training and skills they needed to meet employers' demands.

  He urged Governor Ridge to reverse policies that adversely impact working parents struggling to break the cycle of welfare dependency, including those that exclude education and training from the work requirement, sanction children as well as parents, and place women and children at risk of further domestic violence.

  He served as a member of the Advisory Committee of the Joint State Government Commission Task Force on Services to Children and Youth which developed recommendations to better meet the needs of children who are victims of abuse.

  Bob Casey led - and won - the fight to provide for greater public disclosure of the identity and whereabouts of convicted sexual offenders after a performance audit he conducted exposed the startling inadequacies of Pennsylvania's Megan's Law.  Casey's audit also revealed that the Pennsylvania State Police lost track of hundreds of convicted sex offenders and sometimes failed to notify communities that sexually violent predators had moved into their neighborhoods.  As a result of Casey's advocacy, dramatic changes were made.  The public now has access to information about more than 7,500 sex offenders, not just the 17 that were available on the State Police web site at the time of Casey's audit.

  Bob Casey was a leader in the battle to convince the Pennsylvania House to pass legislation to better protect children who are victimized by crime when they testify at trials.  After a long fight, voters in 2003 approved a constitutional amendment to allow child victims to testify by videotape or closed-circuit TV.

  Bob Casey conducted an investigation following the tragic death of a four-year-old that found deficiencies in the Child Protective Services Law (CPSL) and in the handling of child abuse complaints.  To better protect Pennsylvania's children, Casey recommended that the General Assembly amend the CPSL to clarify child abuse complaint categories, lengthen the timetable for retention of abuse reports, and allow the Auditor General access to child abuse report files.

  Bob Casey conducted the first-ever performance audit of the Department of Environmental Protection's oversight of Pennsylvania mammography facilities.  He found that DEP inspected nearly all of these facilities on time and in compliance with stringent federal quality and safety standards.  As a result of Casey's audit - and at his urging - DEP improved women's access to DEP inspection information.

  He urged the Ridge administration to amend PA's Medicaid plan to accept federal funding to treat uninsured, low-income women with breast and cervical cancers, and he repeatedly urged the Ridge administration to prepare a mapping breakdown of breast cancer rates across the Commonwealth of Pennsylvania.

  Bob Casey conducted a performance audit of the Commonwealth's oversight of group homes for the mentally retarded in Western Pennsylvania that found serious deficiencies that threaten the health and safety of residents, including allegations of abuse and unexpected deaths that were not investigated promptly, caregivers with criminal backgrounds, and inadequately trained caregivers.  He offered nearly 50 recommendations to improve quality of care.



"He has a proven track record of standing up for seniors."

Wilkes-Barre Citizens' Voice, May 20, 2002



  Bob Casey's first-ever performance audit of Pennsylvania's long-term care system found that Health Department bureaucrats were letting weeks and months elapse before investigating life-threatening complaints about nursing home care.  In one case, the Health Department showed up to investigate a complaint 10 days after the resident had died.  As a result of Casey's audit and the 25 recommendations he offered to improve the quality of long-term care, Governor Ridge was forced to acknowledge the flaws in the nursing home complaint response system, increase the Health Department's budget by $1.4 million, institute sweeping changes in Health's policies and procedures, and accept the Health Secretary's resignation.

  Bob Casey successfully challenged the Governor to compile a omprehensive, family-friendly, easy-to-access Nursing Home Report Card, crack down on bad nursing homes, and initiate surprise inspections of nursing homes.

  Eight months after exposing the state's failure to effectively monitor the health and safety of nursing home residents, and after personally visiting several nursing homes, Bob Casey presented Governor Ridge with a detailed action plan to improve the quality of long-term care.  The recommendations of Casey's Task Force included:

  • Strengthening whistleblower protections for nursing home employees who expose fraud that results in substandard care;
  • Improving the Health Department's enforcement of laws and imposition of sanctions;
  • Addressing the staffing crisis among nursing assistants;
  • Providing cost-effective public funding for assisted living; and
  • Opposing privatization of county-owned nursing homes.

  He increased awareness of whistleblower protections currently available for nursing home employees and others under the Older Americans Protective Services Act by providing every Pennsylvania nursing home with a notice they could post.

  He conducted an audit which found that the state paid a county nursing home nearly $6,500 in Medicaid funds for residents who were discharged or dead.

  Bob Casey focused unprecedented attention on Pennsylvania's long-term care staffing crisis.  In 1999, he coordinated the state's first-ever long-term care symposium to address the critical shortage of qualified nurses' aides and develop new ways to recruit and retain more direct care staff.  He repeatedly spoke out against mandatory overtime for nurses' aides, deplorable pay, unsafe patient-staff ratios, inadequate training and a lack of career advancement opportunities.

  In 2003, Bob Casey and the Pennsylvania Culture Change Coalition, a group he helped form following his 1999 symposium, presented Governor Rendell with a comprehensive strategy to address Pennsylvania's long-term care staffing crisis.

  He conducted the first-ever performance audit of home health care oversight which found that the administration failed to impose sanctions on home health care agencies that had been cited for serious deficiencies.  State officials agreed with Casey's findings and recommendations and pledged to develop a strategy to more effectively use sanctions to improve the quality of home health care.

  He conducted the first-ever performance audit of the state's oversight of personal care homes which found that DPW renewed licenses without verifying that serious violations were corrected, licensed new homes without ensuring that administrators and staff were qualified, failed to impose fines and penalties as required by law, and investigated almost half of the complaints it received late.

.  He exposed the Ridge administration's lax oversight of hospitals and warned that serious health and safety violations may go undetected for years, threatening patients.

  He worked with the U.S. Attorney's Office for the Middle District of Pennsylvania to share information about nursing home complaints, deficiencies and improprieties.



"Mr. Casey provides a badly needed watchdog service on the cost-effectiveness of providing health and child care for poor children."

Philadelphia Inquirer, November 13, 1998



  Bob Casey prompted the Department of Public Welfare to change many of its policies after his first-ever performance audit of the state's child care oversight found serious deficiencies, including unreported child abuse, late investigations of "high-risk" complaints, and child care centers operating with expired licenses.  Child abuse allegations are now immediately referred to the proper authorities for investigation.

  He successfully pushed Governor Ridge to mandate criminal background checks for child care providers who receive state funds after his auditors found 25 people with serious criminal backgrounds - including manslaughter and statutory rape - caring for children in their homes at taxpayer expense.

  He conducted a performance audit that uncovered a $400 million stockpile of child care and other funds at the same time the Ridge administration was dramatically increasing the co-payments that low-income working mothers paid for child care.

  He forced the Ridge administration to reverse its cruel and unfair child care regulations that were decimating the budgets of low-income working families and putting children at risk.  After a year of pressure - during which Casey joined struggling working moms at 13 public forums across the state and distributed to the Governor two compendiums of real-life testimony from these forums - Governor Ridge finally announced that he would make subsidized child care more affordable.

  For his tireless advocacy on behalf of children in child care, Bob Casey received the Beacon Award from the Pennsylvania Child Care Association.

  He conducted a performance audit which found that the Commonwealth forfeited over $100 million in state and federal funds for the Children's Health Insurance Program when there were as many as 50,000 children eligible, but not enrolled.

  He repeatedly urged the Governor and General Assembly to improve the Medicaid and Children's Health Insurance Programs by doing such things as covering all uninsured children up to age 19, implementing aggressive outreach efforts to enroll more kids, and expanding coverage to encourage immunizations.



"One thing is clear: Casey has put his finger on the pulse of Pennsylvania taxpayers: public education, its quality and cost."

Bloomsburg Press-Enterprise, January 14, 1998



  Bob Casey repeatedly advocated public policies that help young children reach school age healthy and ready to learn.  In June 2001, he opened a national conference at Harvard's John F. Kennedy School of Government that highlighted innovations in child care and early childhood education programs.

  Several school districts implemented new safeguards to better protect children after audits by Bob Casey exposed bus drivers with criminal histories, bus drivers who lacked child abuse clearances, and bus drivers who lacked valid drivers' licenses.  In 2006, legislation was finally passed that required all prospective school employees - including bus drivers - to submit a copy of their federal criminal history record with their employment application.

  He repeatedly urged the Governor to make investments in education to reduce class size, improve teacher training, and retain well-qualified teachers.

  He launched Pennsylvania's first-ever School District Performance Review Program to improve efficiency and help get more dollars into the classroom for teaching and learning.  These voluntary reviews offered hundreds of recommendations and identified millions in potential savings for 18 school districts.

  He conducted a special audit of 40 school districts that found numerous instances of non-compliance with a state law relating to violence and weapons in schools.

  He audited over two dozen charter schools, finding that many of them did not require most of their professional staffs to hold appropriate state certification.

  He recommended several ways that state government and school districts can better safeguard school district investments, prepared a report for school districts to help them avoid losing funds to risky investment schemes, and helped draft legislation to better protect the investments of school districts and municipal governments.

  He notified school districts that they may not be receiving all the local taxes they are owed after investigators uncovered questionable practices at two tax collection firms.

  He conducted several investigations of school districts, including one that led to a conviction and prison term for a superintendent who illegally used school district funds to purchase Japanese artifacts.



"Casey's emphasis on the concerns of real people is the strongest recommendation for him.   He conveys the character of deep Pennsylvania roots."

                                                            Wilkes-Barre Citizens' Voice, May 12, 2002        
       


  Bob Casey demonstrated his personal commitment to fairness and equal opportunity in both the management of his Department and in the issues he fought for as Auditor General.  

  To strengthen and support working families, he expanded, at no additional cost, the Department of the Auditor General's parental leave policy to give parents more paid time off with their new children.

  He enacted the first-ever policy in state government to support employees who are victims of domestic violence, sexual assault and stalking.  This policy provides victims of these crimes with a supportive workplace environment, flexible leave options and connections to resources to help them remain productive employees with the financial security necessary to live free from abuse and violence.

  Upon taking office, Bob Casey hired experienced professionals who are dedicated to public service, including a CPA as the Commonwealth's first-ever Deputy Auditor General for Performance Audits, a CPA and Certified Government Financial Manager as Deputy Auditor General for Audits, and a former federal prosecutor and Pennsylvania Inspector General as head of his Office of Special Investigations.

  He instituted a strict Code of Conduct for employees that set high standards for integrity, professionalism and public service.

  He created an Office of Affirmative Action to help him recruit and retain the very best professionals, established a program to monitor contract compliance in the Department of the Auditor General, and hired an MBE/WBE Officer to ensure that minority- and women-owned firms have equal access to all contracting opportunities.

  Over 20% of Bob Casey's new hires were minorities and nearly 50% were women.  

  In tough economic times, Bob Casey consistently did more with less - increasing audit production while streamlining the operations of his department and aggressively cutting costs.  When he left office in 2005, his staff had almost 100 fewer employees than the 865 that were on the payroll in 1997.



"Casey took a caretaker job and made it into a watchdog for taxpayers, investigating and rooting out waste in corners of the bureaucracy that no one really cares about.   Or even knows about."

Easton Express Times, May 19, 2002

 

 
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