A state audit released today confirmed that management and communication problems at the Ohio Bureau of Workers Compensation, Columbus, contributed to ethics violations at the $17.4 billion fund.
The fiscal 2005-2006 audit found improper monitoring of the funds private equity investments; lax internal controls over contribution rates; and poor communication between the legal and financial reporting departments. Also, the audit confirmed that Terrence Gasper, former CFO, accepted bribes; Mr. Gasper pleaded guilty last June to doling out bureau business in exchange for payments from brokers and marketers at investment management firms.
This is an important step toward restoring public trust and accountability within the Ohio Bureau of Workers Compensation, state auditor Mary Taylor said in a news release. The audit clearly reflects weaknesses in the system that escalated into major problems allowing for fraud, theft and corruption to occur. Ms. Taylor was not available for further comment.
Spokesman Keary McCarthy said the bureau is pleased the audit is complete and that management has attempted to address most of the issues targeted in the audit.