During a town hall meeting held by TAPS regarding McKinney route changes, Collin County Commissioner and TAPS board president Chris Hill announced that TxDOT will not be providing any reimbursement funding to TAPS until further notice because of the current criminal investigation. That means TAPS has lost state and federal funding.
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Texoma Area Paratransit System officials released a statement today confirming that the State Department of Health and Human Services not only canceled its contract with TAPS but is doing so while investigating the organization for possible fraud.
Hill said he wanted to clarify the agency's statement.
"We received confirmation this morning that there is an ongoing criminal investigation of the former executive director, Brad Underwood," Hill said.
Hill said he felt the contract cancelation was the best thing for TAPS, allowing the organization to be focused on transit and not Medicaid.
"I know that might not be the overall opinion of the board, but I think it allows us to sharpen our focus," he said. "Now, the manner in which we got here is a big problem. The state has lost so much confidence in TAPS that they came and took the Medicaid contract back—that's a problem for me. That they confirmed that they are investigating the former executive director—that's a problem for me."
Hill said he spoke with the lead investigator this morning, adding that he was very clear that the three different individuals currently under investigation are the same individuals that had been referenced in an anonymous July letter sent to officials at the Texas Department of Transportation, North Central Texas Council of Governments, TAPS employees, HHSC, and several other organizations including local county and city officials.
The board of directors, Hill said, did not receive the letter until October, when HHSC came to TAPS to investigate the letters claims.
In the letter, the writer claims that Underwood and two other employees developed companies used by TAPS as sole subcontractors for the organization's Medicaid contract. The two employees, who ran the Medicaid call center, employed all Medicaid supervisors, drives and dispatchers, the letter states, misreported the names and tax information of their companies to TAPS and benefitted more that $290,000 a month.
Underwood, the letter claims, sold his company to the two employees currently being investigated. By doing so, the letter claims, he extricated himself from what had become a losing enterprise and provided TAPS a way to run its competitor out of business. Within a month of the sale, the writers state, the employees reduced the sub-contracted tips to its competitor to zero.
Paying payroll
As TAPS continues to fight an uphill battle, employees are left questioning when their full paychecks will be paid.
For the past three weeks, TAPS has struggled to pay payroll on-time. Payroll was due Nov. 6 to more than 150 employees who instead received an email from TAPS stating that payroll would, once again, not be paid on time.
It wasn’t until Nov. 10 that employees were notified they would be receiving partial payment for their work.
“We have received some of our funding and while it is not ideal, we will be able to issue checks today for half of your payroll,” TAPS officials said in an email sent to employees. “For example, if you worked 80 hours, you will be paid today for 40 hours. The remaining payroll will be issued as soon as the rest of our expected funding is received.”
TAPS officials said they did not know when the balance would be paid to employees, adding that they were told a large sum of Medicaid billing is due in the TAPS account by the end of the day today.
“HHSC will monitor payables from todays payment of approximately $450,000,” said Dan Acree, TAPS spokesman. “That will include Access employees and others who are due money from TAPS. Whatever is left will go to pay TAPS Public Transit bills, including employees.”
Hill confirmed that a payment would be sent to TAPS from Medicaid Nov. 12 and that would be the last one received. According to a statement sent by TAPS Nov. 12, any contract monies due to TAPS for the most recent month of service will be used to pay any outstanding debts related to performance of Medicaid services. That includes but may not be limited to, subcontractors, independent transportation providers and employees.
"I spoke with HHSC this morning and she said that payment will be made," Hill said. "We will have to pay any outstanding Medicaid debt will be repaid and any remaining funds will be used to pay employees."
Hill said the North Central Texas Council of Governments is preparing reimbursement payments to TAPS Nov. 13 and TxDOT is also sending reimbursements as well, both of which will be used to pay employees.
"Essentially the only money we have coming in right now is money we have already spent and are being reimbursed for," Hill said.
