New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending October 7, 2017
Source: Office of the State Comptroller
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New York State Comptroller Thomas P. DiNapoli issued the following audits and examinations:
Department of Health: Questionable Payments for Practitioner Services and Pharmacy Claims Pertaining to a Selected Physician (Follow-Up) (2017-F-2)
An initial audit issued in September 2015 found significant issues with medical records provided by a physician to support his Medicaid claims. There was insufficient assurance that the doctor provided appropriate medical care and that services totaling $1,039,404 warranted Medicaid payment. At the time of the follow up review, the Office of the Medicaid Inspector General (OMIG) was actively investigating the doctor. According to OMIG officials, steps will be taken to implement each of the four recommendations made in the initial audit pending the results of the investigation.
An initial audit issued in September 2015 found significant issues with medical records provided by a physician to support his Medicaid claims. There was insufficient assurance that the doctor provided appropriate medical care and that services totaling $1,039,404 warranted Medicaid payment. At the time of the follow up review, the Office of the Medicaid Inspector General (OMIG) was actively investigating the doctor. According to OMIG officials, steps will be taken to implement each of the four recommendations made in the initial audit pending the results of the investigation.
Department of Health (DOH): Medicaid Program: Administrative Costs Used in Premium Rate Setting of Mainstream Managed Care Organizations (MCOs) (2015-S-76)
Auditors found that one MCO reported about $9.8 million in administrative expenses that were not allowable. Several MCOs appear to have shifted costs from the non-allowable category of marketing to the allowable category of facilitated enrollment, contrary to the intent of a policy change that was initiated from the Governor's Medicaid Redesign Team proposal. As a result, DOH is not fully realizing the annual savings that should occur as a result of the policy change. For fiscal year 2014-15, auditors estimate DOH paid MCOs about $127 million for facilitated enrollment through the premium rates. However, despite the magnitude of these payments, DOH does not adjust each MCO's premium to reflect the MCO's actual facilitated enrollment activities.
Auditors found that one MCO reported about $9.8 million in administrative expenses that were not allowable. Several MCOs appear to have shifted costs from the non-allowable category of marketing to the allowable category of facilitated enrollment, contrary to the intent of a policy change that was initiated from the Governor's Medicaid Redesign Team proposal. As a result, DOH is not fully realizing the annual savings that should occur as a result of the policy change. For fiscal year 2014-15, auditors estimate DOH paid MCOs about $127 million for facilitated enrollment through the premium rates. However, despite the magnitude of these payments, DOH does not adjust each MCO's premium to reflect the MCO's actual facilitated enrollment activities.
Hudson River Park Trust: Selected Financial Management Practices (2016-F-22)
A prior audit found the trust needed to improve its practices related to revenue collection, procurement, investments, payroll, budgeting and equipment inventories. In a follow-up, auditors found that the trust made progress in correcting the problems identified in the initial report. However, additional actions are still needed.
A prior audit found the trust needed to improve its practices related to revenue collection, procurement, investments, payroll, budgeting and equipment inventories. In a follow-up, auditors found that the trust made progress in correcting the problems identified in the initial report. However, additional actions are still needed.
Metropolitan Transportation Authority: New York City Transit - Train On-Time Performance (Follow-up) (2017-F-8)
A prior audit determined that for calendar years 2013 and 2014, actual on-time performance for subways was well below the goal of 91.9 percent. In a follow-up, auditors found that the MTA made limited progress in addressing the problems identified in the prior report. Of the two prior audit recommendations, neither were fully implemented. Moreover, since the conclusion of the last audit, on-time performance has continued to decline.
A prior audit determined that for calendar years 2013 and 2014, actual on-time performance for subways was well below the goal of 91.9 percent. In a follow-up, auditors found that the MTA made limited progress in addressing the problems identified in the prior report. Of the two prior audit recommendations, neither were fully implemented. Moreover, since the conclusion of the last audit, on-time performance has continued to decline.
State Education Department (SED): Lois Bronz Children's Center Inc., Compliance with the Reimbursable Cost Manual (2016-S-86)
The center provides preschool special education services to children with disabilities who are between three and five years of age. For the two years ended June 30, 2014, auditors identified $177,786 in ineligible costs that the center reported to SED for reimbursement. Auditors also identified $132,713 in questionable costs that the center reported from a contract it could not prove was competitively bid.
The center provides preschool special education services to children with disabilities who are between three and five years of age. For the two years ended June 30, 2014, auditors identified $177,786 in ineligible costs that the center reported to SED for reimbursement. Auditors also identified $132,713 in questionable costs that the center reported from a contract it could not prove was competitively bid.
Thruway Authority: Compliance With Payment Card Industry Standards (2017-S-11)
Auditors identified several matters that management should address to improve the authority's information security program for cardholder data and to help ensure it meets PCI requirements. The Thruway has not taken fundamental steps to secure its network and could also improve certain other technical safeguards over the cardholder data it processes.
Auditors identified several matters that management should address to improve the authority's information security program for cardholder data and to help ensure it meets PCI requirements. The Thruway has not taken fundamental steps to secure its network and could also improve certain other technical safeguards over the cardholder data it processes.
State Comptroller DiNapoli also released the following Municipal Audits
Town of Canandaigua – Fund Balance, Water Operations and Information Technology (Ontario County)
The board has not developed a long-term financial or capital plan, including a plan for reserves, or require a cash flow analysis. The board has not provided sufficient fiscal oversight of the town's water operations. As a result, there are no procedures for the accounting records to be maintained for each water district or extension to ensure that costs are equitably and appropriately distributed. The board has also not adopted policies to sufficiently protect its IT assets.
The board has not developed a long-term financial or capital plan, including a plan for reserves, or require a cash flow analysis. The board has not provided sufficient fiscal oversight of the town's water operations. As a result, there are no procedures for the accounting records to be maintained for each water district or extension to ensure that costs are equitably and appropriately distributed. The board has also not adopted policies to sufficiently protect its IT assets.
Greece Public Library – Information Technology (Monroe County)
Library officials need to improve controls to ensure that Library IT assets are adequately safeguarded. The board has not adopted any IT policies, including those addressing acceptable use, password management, user accounts, access rights, data backups, hardware and software inventories, restricting personal use, remote access or the disposal of hardware and electronic media.
Library officials need to improve controls to ensure that Library IT assets are adequately safeguarded. The board has not adopted any IT policies, including those addressing acceptable use, password management, user accounts, access rights, data backups, hardware and software inventories, restricting personal use, remote access or the disposal of hardware and electronic media.
Industrial Development Agency Board Governance (2017-MS-1)
Of the six IDAs examined, auditors found 49 of 155 projects reviewed contained incorrect information, including inaccurate job creation and retention numbers, project status and transfer information. The agencies' 2014 annual reports indicated they would create or retain 13,818 jobs, but they actually created or retained 10,209 jobs, a shortfall of 26 percent. In addition, the Orange County IDA's board acted outside of its authority by agreeing to accept a grant and administering the grant funds in consideration for approving a payment in lieu of taxes agreement.
Of the six IDAs examined, auditors found 49 of 155 projects reviewed contained incorrect information, including inaccurate job creation and retention numbers, project status and transfer information. The agencies' 2014 annual reports indicated they would create or retain 13,818 jobs, but they actually created or retained 10,209 jobs, a shortfall of 26 percent. In addition, the Orange County IDA's board acted outside of its authority by agreeing to accept a grant and administering the grant funds in consideration for approving a payment in lieu of taxes agreement.
Town of Junius – Supervisor's Records and Reports (Seneca County)
The town supervisor relied on the secretary to perform most of the financial transactions without providing adequate oversight. Consequently, the town's records are incomplete and not up-to-date, and are therefore, unreliable. The supervisor also failed to provide the board with the necessary financial reports to adequately monitor operations, and did not file the required reports with the appropriate agencies.
The town supervisor relied on the secretary to perform most of the financial transactions without providing adequate oversight. Consequently, the town's records are incomplete and not up-to-date, and are therefore, unreliable. The supervisor also failed to provide the board with the necessary financial reports to adequately monitor operations, and did not file the required reports with the appropriate agencies.
Orange County Community College – Information Technology and Financial Activities (2017M-111)
The board did not adopt adequate IT policies that address appropriate computer use and security. The board also needs to improve its purchasing procedures to ensure college officials procure goods and services in accordance with applicable statutes. College officials did not ensure that claims were properly authorized, supported and for legitimate purposes.
The board did not adopt adequate IT policies that address appropriate computer use and security. The board also needs to improve its purchasing procedures to ensure college officials procure goods and services in accordance with applicable statutes. College officials did not ensure that claims were properly authorized, supported and for legitimate purposes.
Village of Ravena – Departmental Collections and Leave Accruals (Albany County)
The recreational director and other staff collected pool fees but did not issue receipts or maintain records to adequately account for collections. Staff also did not properly update the accounting records and did not accurately record departmental collections.
The recreational director and other staff collected pool fees but did not issue receipts or maintain records to adequately account for collections. Staff also did not properly update the accounting records and did not accurately record departmental collections.
Westchester County Sewer Districts – Financial Condition (2017M-155)
County officials have adopted structurally balanced budgets using fund balance in a judicious manner. The budget process for the county's sewer districts found officials adequately monitor the budget throughout the year.
County officials have adopted structurally balanced budgets using fund balance in a judicious manner. The budget process for the county's sewer districts found officials adequately monitor the budget throughout the year.
For access to state and local government spending, public authority financial data and information on 140,000 state contracts, visit Open Book New York. The easy-to-use website was created to promote transparency in government and provide taxpayers with better access to financial data.