Audit finds gaps in OC pandemic contracts

Orange County auditors found that county officials bypassed documentation rules and missed warning signs in COVID-era contracting, including payments that could not be fully verified, Voice of OC reported.

The findings add to scrutiny of county oversight after former Supervisor Andrew Do pleaded guilty to accepting bribes and was sentenced to five years in prison in a case involving more than $10 million routed to nonprofits where his daughter worked.

Voice of OC reported that county auditors reviewed contracts, invoices, complaint records and test-kit data tied to pandemic spending. Auditors found cases where work began before contracts were completed and where vendors lacked records to support payment requests.

County payments to 360 Clinic covered 68,935 COVID-19 tests totaling $3.4 million, but auditors could not fully determine whether some claims had already been paid by insurance or HRSA, according to Voice of OC. The audit identified 2,646 unverified tests worth $132,300, including 1,574 that appeared to be double-billed and 1,072 with no matching test-kit record.

Auditors also said $10.7 million in contracts were not created until months after the county had started working with contractors, Voice of OC reported. Mercy Pharmacy submitted vaccination invoices totaling $748,720 for January 2021 through June 2021, but auditors said no supporting documentation was provided.

The audit also raised conflict-of-interest concerns involving former OC Health Care Agency Director Dr. Clayton Chau, Rhiannon Do, Warner Wellness and OCAPICA. “During our review, we identified multiple instances where it appeared that Dr. Chau dismissed concerns from HCA leadership concerning a possible conflict of interest related to Rhiannon Do’s position at Warner Wellness and the subcontract with OCAPICA,” Orange County internal auditors wrote, according to Voice of OC.

Bridgecreek Realty Investment Corp spent more than $500,000 in county funds, and some of that money went toward equipment retained by Perfume River Restaurant, Voice of OC reported. Auditors found $35,000 paid to the restaurant for equipment.

“Taxpayers deserve to know exactly where their money is going, but the county routinely bypassed its own rules,” Orange County Supervisor Janet Nguyen wrote in a statement, according to Voice of OC. “They scammed taxpayers in the most difficult time of their lives and no one’s accountable.”

The audit leaves county leaders facing renewed questions over how emergency pandemic dollars were approved, tracked and reviewed.