/Staffing shortage at Mississippi Prison Industries increases risk for fraud, auditor’s report finds

Staffing shortage at Mississippi Prison Industries increases risk for fraud, auditor’s report finds

The non-profit has other problems as well. There is a lack in documentation for accounting transactions like travel, expenditures and pay raises. Servers at the company are not kept secure. Other issues include the corporation’s fixed assets and inventory, pension and retiree insurance liabilities. Officials from the auditor’s offices said that the issues stemmed from a lack of cash. They cited the loss in a contract to build fish tanks for a Texas-based fish farming company, as well as a shortage in staff across the company and a management change. According to a news release issued by the auditor’s offices, “Without proper staffing levels, job responsibilities have not been properly divided.” MPIC CEO Jeff Solari did not respond to Monday’s requests for comment. MPIC was created by the state Legislature in 1990 to reduce recidivism and provide prisoners with work experience. MPIC is not the first to be under scrutiny by government watchdogs. The Joint Legislative Committee on Performance Evaluation and Expenditure Review last year noted that the nonprofit’s net value had fallen $6.7 million between 2012 and 2017. The PEER committee suggested three options to MPIC: To eliminate the least profitable industries of the corporation, to file bankruptcy or to dissolve it. The corporation’s board of 13 members fired Brad Curtis, its CEO, in spring. In December, PEER released a follow-up report that indicated that MPIC had selected the first option. It had also taken steps to focus on products that were profitable in the past such as wind chimes and grills at the Canton Flea Market. According to its website, MPIC is based on the sales of inmate-produced goods like furniture, apparels, metal fabrications, printing, and other products. MPIC submitted a corrective action plan to the auditor’s offices in April.