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As Washington City Paper reported last week, a Department of Health and Human Services (DHHS) computer glitch prompted the feds to send gobs of extra money to handicapped advocacy organizations in fiscal ’94. Every organization returned the money, except D.C.’s Information, Protection, and Advocacy Center for Handicapped Individuals (IPACHI), which spent the extra $247,000 in ways it was unable to document. Under pressure from the feds, the District is auditing the organization and may cancel its contract, according to Bob Williams, head of the federal Administration for Developmental Disability. Federal officials recently met with Vernon Hawkins, the head of the city’s health department, to discuss IPACHI’s future. Williams told Hawkins that even though IPACHI had received double its normal funding, he received complaints that its services actually declined last year. DHHS’s mental health division has reached the same conclusion, says division Commissioner Reggie Wells. Since IPACHI serves more than 30,000 handicapped individuals, the feds “want this resolved as soon as possible,” says Wells. “We stressed to Vernon Hawkins we don’t want to be into another fiscal year, because we could not feel good about releasing any money to IPACHI.”