September 24, 2019, New York State Comptroller Thomas P. DiNapoli announced the following audits and examinations have been issued.
Office of General Services (OGS): Compliance With Executive Order 88: Energy Efficiency of State Buildings (2018-S-62) OGS has developed targets and plans to contribute toward EO 88 and complied with the guidelines. However, OGS relied on one project to provide the majority of its energy savings. This project has met criticism from environmental and community advocates because of health concerns related to the burning of natural gas, and its implementation is currently in doubt. Should the project fail to move forward, it is unlikely that OGS will meet its goal of reducing energy usage by 20 percent.
Department of Health (DOH): Managed Care Organizations (MCOs): Payments to Ineligible Providers (Follow-Up) (2019-F-2)
An initial audit released in February 2018 found MCOs improperly paid $50.3 million to providers who were excluded from the Medicaid program or who were otherwise ineligible to receive Medicaid payments. Auditors also identified 22.5 million MCO claims (totaling over $2 billion) that lacked the provider identification information needed to assess the propriety of payments. In a follow-up, auditors found DOH officials made some progress in addressing the problems identified in the initial audit.
Division of Homeland Security and Emergency Services: Continuity of Operations Planning (COOP) (Follow-Up) (2019-F-13)
An initial audit issued in March 2018 examined the adequacy of state agencies’ continuity of operations planning for major unexpected events. Auditors tested a sample of 11 agencies, finding they had incorporated certain essential features of the COOP best practices endorsed by the division. Auditors also identified some opportunities for improvements. In a follow-up, auditors found the division implemented the recommendations in the original report.
Division of Housing and Community Renewal (DHCR): Enforcement of the Mitchell-Lama Surcharge Provisions (Follow-Up) (2019-F-9) An initial report issued in April 2018 found DHCR in general properly assessed surcharges at Mitchell-Lama housing developments, but there were significant deficiencies in the processes used. In a follow-up, auditors found that DHCR has made some progress in addressing the issues previously identified.
Office of Information Technology Services (ITS): Oversight of Information Technology Consultants and Contract Staffing (2018-S-38)
In general, ITS is monitoring IT services procured from consultants and contract staff to ensure compliance with contract terms and deliverables. For 14 of the 20 contracts reviewed, ITS provided adequate oversight to ensure that the contractor or consultant was fulfilling the contract. For the remaining six contracts, for which ITS paid out more than $156 million, there were deficiencies in contract monitoring – primarily of contractors’ reporting and documentation requirements.
Department of Labor: Examination of Unemployment Insurance Benefit Payments Jan. 1, 2018 – Dec. 31, 2018 (2019-UI-1)
Auditors identified 2,115 unemployment insurance overpayments totaling $788,487. Based on the findings, the department assessed penalties valued at $1,110,430 against certain claimants who received the overpayments. Auditors also identified 267 underpayments totaling $48,728.
An initial report issued in April 2018, found the department lacked policies and procedures to guide its complaint investigations, resulting in missing documentation, inconsistent application of the law, delayed investigations of state-operated facilities, and poor communication with complainants. In a follow-up, auditors found the department has made some progress in addressing the problems identified.
Metropolitan Transportation Authority (MTA): New York City Transit: Selected Safety and Security Equipment at Subway Stations (Follow-Up) (2019-F-7)
An initial report issued in April 2018, determined that preventive maintenance was not performed within the scheduled frequency levels set by MTA’s New York City Transit unit. Transit did not establish a timetable for preventive maintenance for intercoms passengers can use to obtain emergency assistance. Additionally, repairs were not always done on time. In a follow-up, auditors found the MTA made progress in addressing the problems identified.
Metropolitan Transportation Authority: Staten Island Railway (SIR): Selected Safety and Security Equipment at Train Stations (Follow-Up) (2019-F-8)
An initial report issued in April 2018, determined that SIR did not always perform the inspection and maintenance of security equipment on a timely basis. In September 2017, SIR officials developed a new maintenance procedure for security equipment. However, it was unclear if the new procedure included customer assistance intercoms. In a follow-up, auditors found that the MTA made progress in addressing the problems identified.
Department of Motor Vehicles: Assessable Expenses of Administering the Motor Vehicle Financial Security Act and Motor Vehicle Safety Responsibility Act for the Four State Fiscal Years Ended March 31, 2018 (2019-M-1)
Auditors performed certain procedures to ascertain the expenses the department incurred in administering the acts for the four State Fiscal Years ended
March 31, 2018. On average, the department incurred $20.4 million in expenses to administer the acts for each year.
State Education Department (SED): Bilingual Care Inc.: Compliance with the Reimbursable Cost Manual (2018-S-51)
Bilingual is a New York City-based for-profit organization authorized by SED to provide preschool Special Education Itinerant Teacher (SEIT) services to children with disabilities who are between the ages of three and five years. In addition to the SEIT program, Bilingual operated one other SED-approved preschool special education program. For the three fiscal years ended
June 30, 2015, auditors identified $370,685 in reported costs that did not comply with reimbursement requirements.
State Education Department: Audit of the Tuition Reimbursement Account (TRA) for the Five Fiscal Years Ended March 31, 2018 (2019-S-3)
The TRA’s financial statements represent, in all material respects, the respective financial position of the TRA for the five fiscal years ending
March 31, 2018.
State Education Department: Springbrook NY Inc.: Compliance With the Reimbursable Cost Manual (2018-S-63)
Springbrook is an SED-approved special education provider located in
. Springbrook provides, among other programs, preschool special education services to children with disabilities who are between three and five years of age. For the fiscal year ended Otsego County June 30, 2015, auditors identified $56,183 in ineligible costs that Springbrook reported for reimbursement.
An initial audit released in February 2018 found SUNY should improve its oversight of campus foundations. For example, it did not ensure each campus had an executed contract with its foundation or obtain and review available information that the foundations were required to have, such as the IRS Form 990. Auditors also identified certain questionable foundation expenses. In a follow-up, auditors found SUNY has made significant progress in addressing the problems identified.
In an examination of refunds and credits processed by the department from
Jan. 1, 2018 through Dec. 31, 2018. Auditors returned 12,783 questionable or inappropriate refunds totaling $41.3 million to the department for follow up evaluation and appropriate action. In addition, auditors returned 13,097 credits totaling $6.9 million to the department for follow-up and appropriate action.