CMS Administrator Seema Verma and other top officials mismanaged more than $6 million in communications and outreach contracts, according to an Office of Inspector General report published this week.
The OIG audited three contracts totaling $6.4 million for strategic communication services from June 2017 to April 2019 to determine whether CMS awarded the contracts in accordance with federal laws and CMS policies.
The audit found that CMS prepared the documents necessary for awarding the contracts but failed to administer and manage them in accordance with federal requirements.
In particular, the office found that CMS administered the contracts as "personal services contracts," and allowed a subcontractor to "perform inherently governmental functions, such as making managerial decisions and directing CMS employees."
The subcontractor was a media strategist Ms. Verma worked with before she was appointed administrator of CMS, according to Politico.
Ms. Verma disputed the inspector general's findings. In a response that accompanies the report, she said CMS has concerns about the conclusions, which "are based on unsubstantiated assumptions and incomplete analysis."
The inspector general recommended several corrective steps, including providing training related to contract administration and requiring HHS to determine whether any contractors or subcontractors are performing inherently governmental functions.
Find the full OIG report here.