RICHMOND, Va. (WRIC) -- The Virginia Department of Health (VDH) has released the results of its year-long audit of its Office of Emergency Medical (OEMS), which found "significant financial irregularities" including $33 million in unpaid debts and $4 million in fraudulent charges. VDH said the audit, which was requested by Commissioner Dr. Karen Shelton, MD and Chief Operating Officer Christopher Lindsay after financial inconsistencies were discovered in 2023, has led to "major reforms" and the conviction of one former employee. The audit revealed that multi-million-dollar contracts had bypassed state procurement rules through the use of Regional Emergency Medical Services (EMS) Councils and OEMS improperly allocated money from grants intended to fund local rescue squads and trauma response to cover the costs of an EMS Symposium. RELATED: Former VDH employee accused of stealing over $4 million from health department “Lack of oversight and internal controls within OEMS led to financial irregularities and criminal fraud that had impacts at state, regional and local EMS levels,” Shelton said. “While these findings are difficult to confront, VDH has been taking proactive measures to address these issues which will lead to a well-supported EMS system across the Commonwealth.” The audit report outlined 63 key recommendations to address OEMS lack of financial accountability, the following changes have already been implemented: Placement of an interim director of OEMS since the fall 2023 Reorganization of the OEMS leadership structure, including the permanent placement of a dedicated business operations manager to consult on financial decisions Weekly briefings for VDH senior leadership on all aspects of OEMS restructuring and financial status Evaluation and restructuring of all OEMS contracts and business relations to ensure compliance with the Commonwealth of Virginia procurement and contracting requirements Redesign of the Trauma Fund payout plan to create more transparency and regularity of payment for Virginia’s trauma centers Ensuring that all funds committed to the “Return to Locality,” “Rescue Squad Assistance Fund” and “Trauma Funds” are used in accordance with the Virginia Code “The changes we have implemented will ensure that the Office of Emergency Medical Services is now in a much stronger financial position, with the right leadership structure and resources in place,” said Lindsay. “This allows EMS providers across the Commonwealth to be better supported and ready to respond when Virginians need them most.” After the audit was completed, VDH commissioned a consulting firm for recommendations on how to improve OEMS' operations. Those recommendations included the following: A plan to position OEMS for stronger oversight A proposed revised Regional Council structure and oversight model A recommended policy and regulatory framework Enhancements to the EMS Advisory Board, EMS programs, and their functions This is a developing story, stay with 8News for updates.