Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli on December 3, 2014

Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli on December 3, 2014
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Department of Health (DOH): Improper Payments Related to the Medicare Buy-In Program (Follow-Up) (2014-F-12)
An initial audit report issued in October 2012 determined that, from March 2006 through February 2011, Medicaid made nearly 260,000 improper payments (totaling about $26.8 million) for people enrolled in the Medicare buy-in program. In a follow-up, auditors found that DOH officials made progress in addressing the problems identified in the initial audit report. However, further actions are still needed as millions of dollars in questionable and improper Medicaid payments continue to be paid for people enrolled in the Medicare buy-in program. 

Department of Health: Medicaid Program – Excessive Medicaid Payments to Federally Qualified Health Centers for Group Therapy Services (2013-S-51)With approval from the federal Centers for Medicare and Medicaid Services, DOH amended the Medicaid State Plan in 2008 to allow Federally Qualified Health Centers (FQHCs) to provide group therapy services, including group therapy provided by clinical social workers, to Medicaid recipients. FQHCs are organizations such as community health centers and public housing centers that provide primary and preventive care to underserved populations. Auditors found that during the audit period, Medicaid overpaid four FQHCs $7.7 million because the FQHCs billed incorrect reimbursement rates on their claims for group therapy services. The FQHCs billed an approximate rate of $200 per person for group therapy, as opposed to the required $35.16 rate per person.
Hudson River-Black River Regulating District: Financial Management Practices (2013-S-55)
Auditors found revenue from statutory beneficiaries, hydropower agreements, and permit holders has not been sufficient to cover the district’s annual needs. Since September 2009, the district has had a significant backlog of capital projects because of funding limitations, including one project that had been mandated by the Federal Energy Regulatory Commission in 2007 for public safety reasons. The district has cut spending and taken other steps to balance its annual budgets. However, it could potentially generate more revenue and become more efficient by strengthening its practices over past-due assessments, facility maintenance, equipment inventories, time and attendance, and procurement. 

Office of Parks, Recreation and Historic Preservation (OPRHP): Riverbank State Park Administration of the Concession Contract With Riverbank Restaurant Group (RRG) (2013-S-22)
OPRHP entered into a 10-year contract with RRG to provide food concession services at Riverbank State Park in Manhattan. The anticipated state revenues resulting from this contract were estimated at $160,000 annually. RRG was also contractually required to invest a minimum of $622,000 in capital improvements and concession-related upgrades. Auditors found RRG’s reported monthly sales, and the office’s associated licensing fees, were significantly less than anticipated in the contract – about $11.6 million in sales and $580,000 in licensing fees from 2005 to 2009. Further, RRG did not submit the correct amount of licensing fees on the revenues it did report. At the time of the audit, RRG owed OPRHP $136,459 in licensing fees. OPRHP did not perform a thorough vendor responsibility check on RRG before the contract was awarded, and did not adequately monitor RRG operations on a timely basis.