New York State Comptroller Thomas P. DiNapoli reports State Government Accountability audits posted on the Internet

 new material

On September 21, 2026, New York State Comptroller Thomas P. DiNapoli announced that the following State Government Accountability audits have been released.

          Click on the text highlighted in color to access the audit report described.

State University of New York – Artificial Intelligence Governance (2024-S-33) The State University of New York (SUNY) is the nation’s largest comprehensive system of public higher education, and its governing arm—SUNY System Administration (SUNY Admin)—provides general oversight of operations for State-operated campuses. SUNY campuses have adopted artificial intelligence (AI) to support operations, including transcribing clinical notes during patient visits, reading license plates and identifying parking violations in campus parking lots, monitoring campus data to identify students at risk of dropping out and automatically masking personally identifiable information from video evidence. Auditors found that SUNY Admin does not have an effective AI governance framework, a standard definition of AI, or documented policies and procedures related to the development and use of AI systems. A sample of four SUNY campuses that have used AI showed that AI governance varies significantly across campuses—some have identified key risks and taken steps to address them, while others have not created or updated policies to address risks or taken other steps toward effective AI governance.

Metropolitan Transportation Authority – New York City Transit: Risk Assessment and Implementation of Measures to Address Extreme Weather Conditions (Follow-Up) (2025-F-31) Flooding remains a serious issue for New York City and the Metropolitan Transportation Authority’s (MTA) transportation system, including New York City Transit (Transit). In September 2007, the Chair of the MTA appointed a commission to make sustainability-related recommendations to the MTA and its agencies. A prior audit, issued in September 2023, examined whether MTA had identified potential damage to its system and developed plans to mitigate the effect of extreme weather conditions and flooding, and whether the MTA had tested/updated the plans and inspected and maintained the equipment to ensure they can be deployed when needed. The audit found MTA had not implemented one of the most important recommendations—the development of the climate change adaptation master plan.  A review of a sample of capital projects intended to correct or prevent damage found that projects were often incomplete in scope of work, not finished on time or within budget or insufficiently documented. MTA officials made progress in addressing the problems identified in the initial audit report. Of the initial report’s nine audit recommendations, five were implemented, two were partially implemented and two were not implemented.

New York City Office of Technology and Innovation – Artificial Intelligence Governance (Follow-Up) 2025-F-17 New York City’s Office of Technology and Innovation (OTI) was created by the Mayor’s Executive Order 3 in January 2022, with responsibility for the oversight and governance of artificial intelligence (AI). A prior audit, issued in February 2023, examined governance policies for AI use at four agencies: the Administration for Children’s Services, the Department of Education, the New York City Police Department, and the Department of Buildings. The audit found significant shortfalls in oversight and risk assessment of artificial intelligence. OTI officials made some progress in addressing the problems identified in the initial audit report. All three of the initial report’s audit recommendations were partially implemented.

State Education Department (Preschool Special Education Audit Initiative) – Helen Keller Services for the Blind: Compliance With the Reimbursable Cost Manual (2024-S-20) Helen Keller Services for the Blind (Helen Keller) is a New York City-based organization authorized by the State Education Department (SED) to provide Special Class education services to children with disabilities who are between the ages of 3 and 5 years (referred to as the SED preschool cost-based program). For the audit scope, Helen Keller reported approximately $10 million in reimbursable costs for the SED preschool cost-based program. Auditors identified $1,337,765 in reported costs that did not comply with the requirements.

Agriculture and New York State Horse Breeding Development Fund – Security Over Critical Systems (2026-S-2) The Agriculture and New York State Horse Breeding Development Fund (HBDF) is a public benefit corporation responsible for promoting agriculture through the breeding of Standardbred horses and the conduct of equine research within the state. HBDF administers three racing programs and uses the funds from these programs to support the statewide 4-H program and the Harry M. Zweig Memorial Fund for Equine Research to promote equine research at Cornell University. Auditors identified areas where HBDF could improve certain security controls to minimize the risks associated with unauthorized access to its systems and data and communicated the details of these findings in a confidential report to HBDF.

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If an administrative agency reaches contrary results in a particular decision on substantially similar facts, it must provide an explanation

Plaintiff in this CPLR Article 78 proceeding sought to annul a determination of the Nassau County Civil Service Commission affirming its earlier determination disqualifying the Plaintiff to a position as a Nassau County probation officer. Supreme Court denied Plaintiff's petition and, in effect, dismissed the proceeding. Plaintiff appealed the Supreme Court's ruling.

The Appellate Division reversed the Supreme Court's judgment "on the law, with cost's", granted the Plaintiff's petition and remitted the matter to the Nassau County Civil Service Commission for further proceedings in accordance its decision, set out below.

In the Matter of Richard Dopkin, appellant,

v

County of Nassau, et al., respondents.

Supreme Court of the State of New York, Appellate Division, Second Judicial Department

Decided on September 16, 2026

2024-04836, (Index No. 606358/23)

Hector D. Lasalle, P.J.

Cheryl E. Chambers

Paul Wooten

Helen Voutsinas, JJ.

Law Offices of Louis D. Stober, Jr., LLC, Mineola, NY, for appellant.

Thomas A. Adams, County Attorney, Mineola, NY (Robert F. Van der Waag of counsel), for respondents.

DECISION & ORDER

In a proceeding pursuant to CPLR article 78 to annul a determination of the Nassau County Civil Service Commission dated February 6, 2023, affirming its prior determination dated November 28, 2022, disqualifying the petitioner from eligibility for a position as a Nassau County probation officer, the petitioner appeals from a judgment of the Supreme Court, Nassau County (Catherine Rizzo, J.), entered February 16, 2024. The judgment denied the petition and, in effect, dismissed the proceeding.

ORDERED that the judgment is reversed, on the law, with costs, the petition is granted, the determination dated February 6, 2023, is annulled, and the matter is remitted to the Nassau County Civil Service Commission for further proceedings in accordance herewith.

The petitioner took and passed the Nassau County Probation Officer Trainee Examination and was placed on a list as an eligible candidate for employment as a probation officer. In November 2022, after conducting a background investigation, the Nassau County Civil Service Commission (hereinafter the Commission) notified the petitioner that he was disqualified from employment on the grounds of "disrespect for the process of law and order as evidenced by [the petitioner's] motor vehicle record." The petitioner appealed the Commission's determination, submitting, inter alia, a list of previous applicants with allegedly similar or more egregious legal records than the petitioner's, whose initial disqualifications from candidacy were reversed upon administrative appeal. In a determination dated February 6, 2023, the Commission affirmed its prior determination. The petitioner then commenced this proceeding pursuant to CPLR article 78 to annul the Commission's February 6, 2023 determination. In a judgment entered February 16, 2024, the Supreme Court denied the petition and, in effect, dismissed the proceeding. The petitioner appeals.

"An appointing authority has wide discretion in determining the fitness of candidates, and this discretion is particularly broad in the hiring of law enforcement officers, to whom high standards may be applied" (Matter of Dellisanti v Suffolk County Police Dept., 239 AD3d 976, 978 [internal quotation marks omitted]; see Matter of Brown v County of Nassau, 214 AD3d 793, 795). "So long as the administrative determination is not irrational or arbitrary and capricious, this Court will not disturb it" (Matter of Dellisanti v Suffolk County Police Dept., 239 AD3d at 978 [internal quotation marks omitted]; see Matter of Brown v County of Nassau, 214 AD3d at 795). "A decision of an administrative agency which neither adheres to its own prior precedent nor indicates its reason for reaching a different result on essentially the same facts is arbitrary and capricious, and thus, where an agency reaches contrary results on substantially similar facts, it must provide an explanation" (Matter of O'Connor & Son's Home Improvement, LLC v Acevedo, 197 AD3d 1112, 1114 [alteration and internal quotation marks omitted]; see Matter of Mullen v County of Suffolk Police Dept., 307 AD2d 1036, 1037).

Here, the Commission failed to set forth any factual basis to explain why it was reaching a different result than it did with respect to the applications of purportedly similarly situated candidates (see Matter of O'Connor & Son's Home Improvement, LLC v Acevedo, 197 AD3d at 1114; Matter of Klein v Levin, 305 AD2d 316, 317). Thus, the Commission's determination on appeal to affirm its disqualification of the petitioner was arbitrary and capricious (see Matter of O'Connor & Son's Home Improvement, LLC v Acevedo, 197 AD3d at 1114; Matter of Nicolai v McLaughlin, 163 AD3d 572, 574).

In light of our determination, the petitioner's remaining contentions need not be reached.

Accordingly, we grant the petition, annul the determination dated February 6, 2023, and remit the matter to the Commission for a new determination of the petitioner's appeal from the determination dated November 28, 2022, to articulate the reasons, if any, for reaching a different result than it did with respect to the applications of purportedly similarly situated candidates raised by the petitioner.

LASALLE, P.J., CHAMBERS, WOOTEN and VOUTSINAS, JJ., concur.

ENTER:

Darrell M. Joseph

Clerk of the Court

Click HERE to access the Appellate Division's decision posted on the Internet.

Selected items posted on the Internet during the week ending September 17, 2026

New York State's Attorney Letitia James establishes AI whistleblower site The Albany Times Union newspaper reports New York State's Attorney General has created an Internet site on which individuals and organizations may report AI concerns. More

Utah State Sen. Kirk Cullimore has helped put Utah at the forefront of AI Data The focus is privacy and digital identity policy and is designed to be replicated beyond Utah. Read More

Local election officials are welcoming a Supreme Court voting ruling The ruling blocks sweeping changes to mail voting just weeks before the midterms. Months of uncertainty forced officials to prepare contingency plans and created additional work during an already demanding election cycle. Read More

Improving Emergency Response with Modern Cellular Networks This e-book features real-world examples from police, fire, EMS, and 911 agencies that have strengthened connectivity across vehicles, stations, and temporary command sites. DOWNLOAD

Govern AI Before It Governs You Practical templates, scorecards, and worksheets to help your agency govern AI Download the Free Kit

From Threat to Trust: Building Security into Public Workflows Protecting today's public sector means building security into every workflow — not bolting it on afterward. This thought leadership paper explores why embedding security directly into devices and everyday workflows is essential for reducing risk, improving resilience and supporting mission success. Download 

Applied Intelligence: How High-Performance Workstations Are Driving Public Innovation AI innovation starts with the right infrastructure. Learn how high-performance workstations help government agencies process data faster, protect sensitive information and power AI-driven outcomes. Download the paper to discover practical strategies for modernizing your technology foundation. DOWNLOAD

Employee challenged her termination for failing to comply with a COVID-19 vaccination requirement after her Employer denied her request for a religious exemption

Plaintiff was terminated from her position with New York State Unified Court System [Employer] as the result of her failure to comply with Employer's COVID-19 vaccination requirement after Employer denied her request for a religious exemption. 

Employee than sued Employer alleging Employer violated Title VII of the Civil Rights Act of 1964 by failing to accommodate her religion beliefs. 

The United States District Court for the Eastern District of New York granted partial summary judgment for Plaintiff, holding that there was no genuine dispute that the Plaintiff had made out a prima facie case of religious discrimination—resting in large part on statements made by the Employer during discovery—and that the Employer did not demonstrate that granting an accommodation would constitute an undue hardship.

Employer appealed, contending that the Federal District Court failed to modify the prima facie test for failure-to-accommodate religion claims in light of EEOC v Abercrombie & Fitch Stores, Inc., 575 U.S. 768.

The Second Circuit said that it agreed that Abercrombie abrogated the Second Circuit's earlier Title VII precedents. However, because the Federal District Court "improperly deemed statements in the discovery record to be judicial admissions" the Second Circuit vacated the District Court's decision and remanded the matter "for further proceedings" consistent with its instant opinion.

Click HERE to access the opinion of Circuit Court of Appeals, Second Circuit, posted on the Internet.

New York State local government and school audits posted on the Internet on September 16, 2026.

On September 16, 2026, New York State Comptroller Thomas P. DiNapoli announced the following local government and school audits were posted on the Internet.

                Click the text highlighted in COLOR to access the audit report.

South Huntington Union Free School District – Credit Cards (Suffolk County) District officials did not ensure that credit card charges were authorized, supported, for valid district purposes or approved. As a result, the board and officials did not establish adequate oversight and internal controls to provide reasonable assurance that district credit cards were used appropriately and in the best interest of taxpayers. In addition, because the board did not ensure that all claims were reviewed and approved by the claims auditor prior to payment, the district faced an increased risk of paying for goods or services that did not serve a proper district purpose.

Village of Groton – Capital Project (Tompkins County) The village board did not competitively procure certain goods and services for the project. Although the project’s original construction contracts, totaling $3.7 million, were properly procured, the board subsequently procured $135,900 in goods and services without seeking competition in accordance with state law or the village’s procurement policy.

Beekmantown Central School District – Investment Program (Clinton County) Auditors determined that the district’s investments were legal, safe and liquid. However, district officials did not develop and manage a comprehensive investment program. For example, during the audit period, officials did not prepare any cash flow forecasts to estimate funds available for investment or solicit interest rate quotes from financial institutions. As a result, officials missed an opportunity for the district to realize additional revenues of more than $1 million.

Honeoye Central School District – Financial Management (Ontario County and Livingston County) The board and district officials did not effectively manage fund balance. Although the board and district officials generally maintained surplus fund balance within the statutory 4 percent limit, they did so by transferring surplus fund balance to reserves at, or after, year-end and maintaining $1.1 million excess fund balance in the debt service fund. As of June 30, 2025, two general fund reserves totaling $977,890 were not reasonably funded.

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Concerning standing to sue in an educational setting.

Defending Education* is an association of parents, students, and concerned citizens that brought this action pursuant to 42 U.S.C. §1983 challenging a set of student speech policies adopted by the Croton-Harmon Union Free School District, a New York State School District, for alleged violations of the First and Fourteenth Amendments to the Constitution. 

Defending Education represented three of its parent-members whose children attend school in the Croton-Harmon School District and espouse social and political views that they wish to share but refrain from doing so because they feared their speech was prohibited by the School District’s policies. Defending Education brought suit in a Federal District Court seeking a preliminary injunction against the School District's enforcement of those policies. 

The District Court denied that motion and dismissed the action for lack of subject matter jurisdiction citing Aguayo v Richardson, 473 F.2d 1090 (2d Cir. 1973), in which the Second Circuit had held that "Associations lack standing to sue on behalf of their members for claims brought under §1983". Defending Education appealed the District Court’s decision to the Second Circuit but, acknowledging Aguayo, moved for summary affirmance, which the Second Circuit granted. 

Defending Education then petitioned for reconsideration of their cause of action en banc, asking the Second Circuit to overrule Aguayo and to remand the case to the District Court so that Defending Education could pursue its lawsuit against the School District. 

After circulating this opinion to all active members of the Second Circuit and receiving no objection, the Second Circuit overrule Aguayo’s holding "with respect to associational standing under §1983".  In its place, the Second Circuit adopted the rule outlined by the Supreme Court in Hunt v. Washington State Apple Advertising Commission, 432 U.S. 333, 343 (1977), and adopted by its sister Circuits, which provides that a membership organization has standing to bring suit on behalf of its members under §1983 when:

(a) those members would otherwise have standing to sue in their own right;

(b) the interests protected are germane to that organization’s purpose, and 

(c) the participation of individual members in the lawsuit is not necessary for the claim asserted or the relief requested. 

The Second Circuit than REVERSE the judgment of the Federal District Court and REMAND the matter for further proceedings in accordance with its instant ruling. 

* The Court pointed out that "Defending Education is an association of parents, students, and concerned citizens that brought this action pursuant to 42 U.S.C. §1983 challenging a set of student speech policies adopted by the Croton-Harmon Union Free School District (“Croton-Harmon” or the “District”) in New York for alleged violations of the First and Fourteenth Amendments to the Constitution of the United States.

Click HERE to access the Second Circuit's decision posted on the Internet.

 

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