THE MISSISSIPPI LEGISLATURE

Introduction

The Mississippi Department of Rehabilitation Services provides vocational rehabilitation services to persons with physical and mental disabilities or handicaps. Because Mississippi's pool of potentially eligible adults is so large (70.8 severely work-disabled adults per 1,000 members of the working-age population [aged 16-64], based on 1990 census information), MDRS must identify the individuals most in need of and most likely to benefit from its services and must provide its services as efficiently and effectively as possible.

In response to a legislative request, PEER reviewed MDRS's utilization of resources in the accomplishment of its legislative mission and sought to:

• determine what needs MDRS should be meeting and its legislatively intended purpose;
• determine whether policymakers can rely on the information MDRS provides to demonstrate its effectiveness in meeting these needs and accomplishing this purpose; and,
• address allegations of misuse of state resources by MDRS employees.

After receiving additional legislative requests during the course of fieldwork, PEER modified its review of MDRS's utilization of resources to include a review of expenditures in two specific areas. Legislators requested that PEER staff review MDRS's Executive Director's travel expenses for compliance with state law and procedures and MDRS's purchase of modular office furniture in 1994*.

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*On November 5, 1996, the Executive Director of MDRS, Mrs. Nell Carney, announced her resignation effective December 31, 1996, citing health reasons. PEER staff had completed field work and MDRS had reviewed PEER's draft report prior to the resignation announcement. Ms. Carney's resignation changes nothing relative to PEER's report.

Overview

MDRS has not properly implemented a management information system which allows for valid and reliable collection of data on clients served, duration of services, clients rehabilitated, and cost per client served. As a result, MDRS cannot accurately monitor its performance nor use existing data to demonstrate the adequacy of its performance to the Legislature. At present, any conclusions on MDRS's program effectiveness would be based on purely anecdotal information and should not be relied on as a basis for policymaking.

Regarding MDRS's utilization of state resources, PEER found that:

• Although MDRS has complied with the U. S. Department of Education's Inspector General's recommendation to develop internal control policies, MDRS has not implemented procedures prohibiting misuse of agency resources. This creates a poor internal control environment and places federal and state funds at risk.
• The Department of Finance and Administration has allowed MDRS's Executive Director to receive travel reimbursements for departmental business without submitting proper documentation.
• When consolidating Jackson-based operations into its Madison County office, MDRS paid approximately $101,140 for modular furniture which did not meet bid specifications.

1. The Legislature should require MDRS to provide information that answers the policy questions presented in this report in the agency's annual report to the Legislature.

To do so, MDRS should implement a comprehensive management information system incorporating procedures to help ensure data integrity and collect data elements necessary for policy analysis. Such elements should include, but should not be limited to:

• the number of potential clients by severity by region by county;
• the number of rehabilitated clients retained in employment after one year;
• the number of clients rehabilitated versus the number of potential clients to be served;
• the increase in lifetime earnings of rehabilitated clients for every Vocational Rehabilitation or Vocational Rehabilitation for the Blind dollar expended;
• the impact on the state's tax base for every $1,000 income of rehabilitated clients; and,
• the amount of Vocational Rehabilitation case service funds expended on rehabilitated clients referred to Vocational Rehabilitation or Vocational Rehabilitation for the Blind by Disability Determination Services versus the estimated savings in Social Security Disability Insurance payments.

2. MDRS should submit a status report to the Senate and House Public Health and Welfare committees by January 15, 1997, as to the utilization of System 5 as an agency-wide central data base. This report should address steps taken by MDRS to insure the validity and reliability of data entered into the system and steps the agency will take, if necessary at that time, to establish agency-wide reporting and management's utilization of such reports for program improvements.

3. MDRS should immediately develop specific internal procedures which will restrict the use of equipment, supplies, and time to Vocational Rehabilitation-related use only in accordance with the U.S. Department of Education's Inspector General's 1993 recommendation.

4. The Department of Finance and Administration should require MDRS's Executive Director to comply with DFA policies and procedures and state travel laws.

5. MDRS's Executive Director should comply with all state travel regulations and laws and MDRS travel policies. In addition, MDRS should not submit requests for travel reimbursement to DFA which do not comply with all state travel policies.

6. MDRS, in conjunction with the Department of Finance and Administration, Bureau of Purchasing, should determine the exact amount MDRS overpaid for modular furniture which did not meet bid specifications from MISSCO and should institute the proper legal procedures for obtaining a refund in this amount with interest.

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