New York State Comptroller issues state and municipal audits
On June 25, 2026, New York State Comptroller Thomas P. DiNapoli announced that the State Government Accountability audits listed below and certain local government audits were released.
Click the text highlighted in color to access the text of the audit
Department of Health – Medicaid Program: Claims Processing Activity April 1, 2025 Through September 30, 2025 (2025-S-11) During the 6-month period ended September 30, 2025, the Department of Health’s (DOH) claims processing system, eMedNY, processed almost 331 million claims, resulting in payments to providers of nearly $55 billion. Auditors identified over $12.1 million in improper Medicaid payments. As a result of the audit, nearly $3.4 million of the improper payments was recovered. The audit also identified 14 Medicaid providers who were charged with or found guilty of crimes that violated laws or regulations governing certain health care programs. In response to the findings, DOH removed 12 providers from the Medicaid program; one of the remaining two providers was referred to the New York State Education Department’s Office of Professions, and the other provider was referred to DOH’s Office of Professional Medical Conduct.
Metropolitan Transportation Authority – Long Island Rail Road: Mitigation for Extreme Weather Conditions and Flooding (Follow-Up) (2025-F-30) In April 2009, the Metropolitan Transportation Authority (MTA)-established Blue-Ribbon Commission on Sustainability released its Final Report, which predicted that, without an adequate investment in adaptation measures, climate change would have even greater adverse impacts on the MTA’s vital infrastructure, operations, and revenue streams in the future. The report recommended that the MTA have a climate change adaptation master plan in place by 2015. A prior audit, issued in March 2024, found the Long Island Rail Road (LIRR) did not perform a systemwide assessment of its transportation facilities to identify weather-related risks and that LIRR departments either were not in compliance with or did not provide documentation to support compliance with storm operating plans. MTA-LIRR officials made some progress in addressing the problems identified in the initial audit report. Of the initial report’s 12 audit recommendations, five were implemented, four were partially implemented, and three were not implemented.
Empire State Development: Real Property Portfolio (Follow-Up) (2025-F-33) Empire State Development (ESD) invests in infrastructure and innovation, provides early-stage support for new ventures, and strengthens the State’s innovation-based economy through partnerships with universities. A prior audit, issued in August 2024, found ESD did not comply with requirements to publish a report detailing its real property portfolio; as of June 2023, ESD reported it owned 130 properties—of those, 71 (55%) were vacant; and ESD disposed of 10 properties at below-market value between April 2019 and May 2023. While each of the 10 disposals was completed in compliance with requirements, the below-market transfers for seven properties did not include sufficient information about the anticipated economic benefits of the projects compared to the value received and the fair market value of the properties. ESD made significant progress in addressing the problems identified in the initial audit report, implementing two recommendations and partially implementing one.
Department of Civil Service – New York State Health Insurance Program: CVS Caremark Payments Made Under the Incorrect Plan (2025-S-19) The Department of Civil Service contracts with CaremarkPCS Health, L.L.C. (CVS Caremark) to administer the prescription drug program for the Empire Plan, the primary health benefits plan for the New York State Health Insurance Program. This program includes the Empire Plan Medicare Rx drug plan for retired members who have Medicare and their dependents, and a Commercial Plan for non-Medicare-qualified members and their dependents. Claims paid under the Medicare Rx Plan are eligible for drug manufacturer discounts and federal subsidies that are not available for claims paid under the Commercial Plan. Accordingly, ensuring that claims are properly paid under the Medicare Rx Plan allows for significant cost avoidance for the State. The audit identified $19.3 million in claims for 338 Medicare-qualified members and their dependents that were incorrectly paid under the Commercial Plan instead of the Medicare Rx Plan.
Department of Health – Medicaid Program: Oversight of Clinical Trials (2024-S-22) Clinical trials are research studies that evaluate the safety and effectiveness of medical care. New York’s Medicaid program generally does not cover investigational items or services that are the subject of the clinical trial, nor does it cover services provided solely for data collection, but does cover the routine costs of items or services that are necessary for clinical trial participants and are typically covered outside of the trial under the state plan or waiver. In addition to verifying a member’s Medicaid status, a coverage determination must be based on an attestation of the appropriateness of the clinical trial by both the principal investigator and the health care provider responsible for the trial. The audit found that the Department of Health did not always receive an attestation form before members participated in a clinical trial, as required. Additionally, it identified a limited number of improper Medicaid payments for services that were the responsibility of the clinical trial sponsor, investigational services not covered by the member’s managed care organization, or services that lacked supporting prior authorization.
Village of Whitehall – Records and Reports (Washington County) The clerk treasurer did not maintain complete and accurate accounting records, provide the board of trustees with monthly financial reports, or file the fiscal year 2024-25 annual financial report (AFR) with DiNapoli’s office, as required by state law.
Town of Lewis – Transparency of Fiscal Activities (Lewis County) Only two board members audited the supervisor’s fiscal year 2024 financial records and reports, not the entire board as required. Furthermore, the board members did not maintain supporting documentation for the audit work performed or identify cash receipts and payroll issues. In addition, the supervisor did not prepare and file the 2022 through 2024 AFRs with the State Comptroller’s office, as required by state law.
Town of Union – Transparency of Fiscal Activities (Broome County) The board did not provide for a timely annual audit of the town’s financial records for fiscal year 2024. The town comptroller did not prepare and file the 2024 AFR with DiNapoli’s office, as required by state law. The town comptroller also did not provide the board with complete, accurate and reliable monthly financial reports.
Town of Schuyler Falls – Host Fee Payments (Clinton County) The town did not receive accurate landfill host fee payments. As a result, the town did not have access to funds that could have been used for its operations or to potentially reduce the financial burden on town taxpayers. Officials contacted the corporation to discuss the accuracy of the host fee payments previously made to the town. The corporation subsequently agreed to pay the town the outstanding host fees and interest totaling $370,651, consisting of $329,588 for the outstanding host fees and $41,063 for interest.
Theresa Fire District – Audit Follow-Up (Jefferson County) The review examined Theresa Fire District’s progress in implementing recommendations in a prior audit, Theresa Fire District – Board Oversight and Financial Management (2021M-60), released in June 2021. The audit determined the board did not provide adequate oversight to ensure that financial activities were properly recorded and reported and did not properly manage fund balance. Of the audit’s 13 recommendations, district officials fully implemented one recommendation, partially implemented five, and did not implement seven. Until all recommendations are implemented, the board cannot ensure district assets are fully safeguarded.
Fine Fire District – Audit Follow-Up (St. Lawerence County) The review looked at Fine Fire District’s progress in implementing recommendations in a prior audit, Fine Fire District – Board Oversight (2023M-81), released in October 2023. The audit determined the board did not adequately monitor financial activities or maintain appropriate records and reports. Of the audit’s 21 recommendations, the board did not implement 20, and one recommendation was no longer applicable. The commissioners did not provide reasonable explanations for why the board did not implement the recommendations. Additionally, the commissioners demonstrated an unwillingness to exercise the board’s oversight responsibilities by taking no action in the more than two years since the prior audit was issued.
Town of Tompkins Fire District – Audit Follow-Up (Delaware County) The purpose of the review was to assess the Town of Tompkins Fire District’s progress in implementing recommendations in a prior audit, Town of Tompkins Fire District – Board Oversight (2023M-33), released in June 2023. The audit determined that the board did not provide adequate oversight of the district’s financial activities. Of the 12 audit recommendations, district officials fully implemented two recommendations, partially implemented two recommendations, did not implement seven recommendations and one is not applicable.
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