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September 12, 2015

Audit reports for certain governmental entities posted by the State Comptroller on September 10, 2015


Audit reports for certain governmental entities posted by the State Comptroller on September 10, 2015
Source: Office of the State Comptroller

New York State Comptroller Thomas P. DiNapoli announced the following audits were issued on September 10, 2015. Click on the material highlighted in color below to access the full report.

Department of Economic Development - certain local development corporations
In April 2014, DED made a $16,250.00 advance payment to the LDC. Two months later, the LDC claimed the remaining $48,750 of the contract amount. To receive the second claim, the LDC needed to demonstrate that the entire $65,000 in expenses was incurred during the contract period for work relevant to the contract objectives, and was for expenses not previously paid from another funding source. Auditors found the LDC was able to substantiate only $4,284.09 in expenses under the contract.

Department of Environmental Conservation – oil spill funds
DEC generally collected all fees due the Oil Spill Fund for the facilities tested. However, of 11 sampled major oil storage facilities, auditors identified eight that inaccurately reported the number of barrels of petroleum products received, subject to fees and surcharges, or transshipped. For the sampled facilities, these inaccuracies did not materially affect the revenue collected. DEC’s internal controls over payment of cleanup, administrative, and indirect costs provide reasonable assurance that only appropriate expenses were charged to the fund.

Department of Environmental Conservation – electronic waste fees
Auditors found DEC properly collected, recorded, and deposited fees and surcharges due, but did not segregate the responsibilities for collecting and recording cash receipts of the fees and surcharges. Also, supervisory review of revenue and deposit activities was not documented.

Division of Housing and Community Renewal – modernization program at NYC Housing Authority
DHCR officials did not have accurate and up-to-date management information regarding the status of NYCHA’s projects. The information officials provided was dated February 2010. Specifically, five projects (totaling about $4.6 million) were not yet finished, although DHCR officials indicated that they were complete. In addition, eight of the ten projects officials listed as incomplete were, in fact, finished. DHCR officials paid $6.8 million for a change order for one project that was not adequately supported. DHCR did not have formal timeframes for awarding a contract once funding was approved.

State Education Department – Astor services for children
Auditors identified $39,050 in costs that did not comply with SED’s requirements for reimbursement. The non-reimbursable costs included $25,565 in other-than-personal-service (OTPS) costs that were either not allowed, not properly documented, or were not reasonable or necessary. In addition, auditors identified $13,485 in non-reimbursable fundraising activities as well as two teachers and seven teacher’s assistants who did not have the required certifications for their job titles.

Unified Court System – Legal Aid Society
Auditors reviewed select payments totaling $5,448,384 UCS made to Legal Aid for salaries, equipment, and real estate rentals and found Legal Aid spent these funds appropriately.  However, UCS overpaid Legal Aid $412,184 for fringe benefit expenses that were not actual and allowable under the terms and conditions of the contract.  Legal Aid did not appropriately reconcile fringe benefits at year end, moved funds in every non-personal services budget category without providing UCS with the required notification, and moved $546,803 from non-personal services budget categories to personal services budget categories without obtaining the required prior written approval from UCS.

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NYPPL Blogger Harvey Randall served as Principal Attorney, New York State Department of Civil Service; Director of Personnel, SUNY Central Administration; Director of Research, Governor’s Office of Employee Relations; and Staff Judge Advocate General, New York Guard. Consistent with the Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations, the material posted to this blog is presented with the understanding that neither the publisher nor NYPPL and, or, its staff and contributors are providing legal advice to the reader and in the event legal or other expert assistance is needed, the reader is urged to seek such advice from a knowledgeable professional.
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