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September 16, 2022

New York State Comptroller Thomas P. DiNapoli announced the following audits issued on September 16, 2022

New York State Comptroller Thomas P. DiNapoli announced the audits listed below for New York State and New York City Departments and Agencies were issued during the week ending September 16, 2022.

Click on the text highlighted in color to access the complete audit report

Department of Corrections and Community Supervision: Oversight of Transportation Services and Expenses (2021-S-1)
The department has not established adequate controls to effectively monitor and ensure accountability over transportation expenses and performs limited to no central monitoring of payments made through the contractor responsible for serving vehicles. Further, the contractor data does not include sufficient detail needed for the department to adequately monitor vehicle repairs and maintenance costs. Also, the department does not monitor in-house maintenance expenses but, rather, relies on each facility or office for accurate reporting.

Department of Health - Medicaid Program: Claims Processing Activity (2021-S-7)
The audit identified over $36.1 million in improper Medicaid payments. By the end of the audit fieldwork, about $5.5 million of the improper payments had been recovered. Auditors also identified seven providers in the Medicaid program who were charged with or found guilty of crimes that violated laws or regulations governing certain health care programs. By the end of the audit fieldwork, the department removed the providers from the Medicaid program.

Department of Health - Medicaid Program: Improper Managed Care Payments for Misclassified Patient Discharges (2021-S-8)
The audit identified 2,808 managed care inpatient claims totaling $32.3 million for Medicaid recipients who were reported as discharged from a hospital, but then admitted to a different hospital within the same day or the following day (which often meets the definition of a transfer). These claims are at a high risk of overpayment if the first hospital inappropriately reported an actual transfer as a discharge. The audit selected a judgmental sample of 166 claims totaling $2,474,162 from six hospitals and reviewed the associated patients’ medical records. Auditors found that 47 claims were overpaid because they were actually for transfers and not discharges and another 13 claims incorrectly billed as inpatient when they were for outpatient services.

New York City Department of Housing Preservation and Development: Heat and Hot Water Complaints (Follow-Up) (2022-F-3)
HPD officials have made some progress in correcting the problems identified in the initial report. Of the initial report’s eight recommendations, three were implemented, two were partially implemented, and three were not implemented.

Department of Health: Management of Indoor Air Quality for Individuals With Asthma (2020-S-59)
While the department, through its contracts with Local Health Departments (LHDs), has identified poor indoor environmental conditions that impact residents with asthma, it needs to improve its oversight and monitoring of LHDs to ensure that individuals identified with asthma in targeted areas continue to receive appropriate assistance.

New York State Liquor Authority: Internal Controls Over Selected Financial Operations (Follow-Up) (2022-F-12)
SLA has made progress addressing the problems identified in the initial audit report and has implemented the two recommendations from that report.

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