SUMMARY

Expenditures increased from $5.0 billion in FY 2006-07 to $7.5 billion in FY 2010-11, primarily due to growth in the number of recipients. The Department of Health Services increasingly relied on vendors to provide administrative support to the program, and vendor payments increased from $66.2 million in FY 2006-07 to $114.8 million in FY 2010-11. The Department was not able to readily produce the type of management information desired by legislators and needed for effective management. We made several recommendations to improve the Department’s contracting, budgeting, and financial management practices.