Auditors say the state Bureau of Alcohol and Drug Abuse has kept shoddy records, awarded funding to groups that shouldn't receive it and failed to meet requirements for operating substance abuse programs in the state.
The Legislative Counsel Bureau's Audit Division reviewed bureau programs at the request of the Division of Health, which was given control of the 40-year-old agency by the 1999 Legislature.
Chief auditor Gary Crews said liquor tax revenues were not granted according to state priorities requiring the money go where there is a shortage of personnel to treat alcohol abuse. He cited Washoe County, which has the state's highest incidence of alcohol abuse but received no liquor tax money in 1999.
The audit says bureau officials also failed to make sure liquor tax money was used for alcohol-related problems as required by state law. Instead, it was combined with other state and federal funds and substantial amounts of the cash used for drug treatment programs, but not for alcohol.
The bureau failed to publicize services available to pregnant women with drug problems and auditors say many women who need those services may not be aware they can get help without charge.
The audit says the bureau can't provide information on its services to high-risk groups and can't show it spent required amounts for women's services and tuberculosis or HIV programs.
"As a result, the bureau has little assurance it complied with federal regulations or that these treatment populations receive the intended services," the audit says.
The report prompted Audit Subcommittee Chairman Sen. Dean Rhoads, R-Tuscarora, to ask "Are we in trouble with the feds on this?"
Crews said he couldn't guarantee there wouldn't be repercussions from the federal level.
"I'm surprised the feds haven't moved in on us," said Rhoads.
But Health Administrator Yvonne Silva said despite the problems in monitoring the programs and making sure the money went where it was supposed to, she is glad she requested the financial review. And she said she thinks the services are actually getting to the clients around the state.
"I do not believe it affected care that was being provided in the community," she said.
Silva also pointed out that a new bureau director has been named - Maria Canfield - and that the system will get fixed.