ADHS Misallocated $1 Million from Medical Marijuana Program

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A brand new audit has revealed that the Arizona Division of Well being Providers (ADHS) has misused nearly $1 million to function the state’s medical marijuana program. The audit claims that the funds have been “misallocated.”

The auditor discovered two workers with salaries totaling practically $131,000 which have been paid for wholly by the medical marijuana fund regardless that these workers additionally labored on different applications, Arizona Capital Instances reported.

The auditor additionally reviewed a pattern of 65 of the 7,177 fiscal yr 2018 expenditure transactions, totaling roughly $2.6 million. For 30 of the 65 transactions, totaling roughly $962,000, the ADHS paid the complete value of the transaction, nevertheless, different ADHS applications additionally benefited from the expenditures, leading to a attainable misallocation of funds.

The ADHS mentioned, “The Division believes that monies for the [Medical Marijuana] Fund have been spent in an allowable method, and that payroll prices for the Fund have been solely charged for work workers carried out on the Program. Nevertheless, the Division acknowledges that extra formal processes ought to be in place.”

The ADHS additional said that the “ADHS is assured that every one Medical Marijuana funds have been spent in an allowable method, and the report helps this by recognizing that every one audited funds have been spent on personnel and actions associated to this system. Whereas some expenditures could have benefitted different applications along with the Medical Marijuana program, the Division sees this as a bonus that additionally improves public well being capability for the residents of Arizona.”

AP Picture/Gillian Flaccus

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