New York State Comptroller Thomas P. DiNapoli releases Municipal and School Audits

On January 9, 2025, New York State Comptroller Thomas P. DiNapoli issued the following local government and school audits

Click on the text highlighted in color to access the item posted on the Internet

 

Main-Transit Fire Department – Credit Cards (Erie County)
Of the credit card purchases totaling $216,961 examined, purchases totaling $70,042 were not adequately supported, and $62,903 in discretionary purchases did not follow any specific guidelines. Although the board approved the credit card bills for payment, it did not ensure the related voucher packets had adequate supporting documentation to confirm the expenses were appropriate. As a result, 273 purchases were missing invoices or receipts. Auditors also found the board did not establish written policies or procedures for discretionary spending, and as a result, 353 purchases may not have been for proper department purposes.

Main-Transit Fire Department – Banquet Hall Disbursements and Collections (Erie County)
The manager made proper and supported disbursements from Jan. 1, 2022 through Sept. 30, 2023. However, the manager’s duties were not segregated, and he did not maintain prenumbered contracts, receipts or another suitable record to demonstrate amounts of collections due to the department. The manager booked rentals, collected and deposited rental fees, issued refunds and disbursed funds for rental hall purchases and operating expenses. He also calculated his own compensation and prepared and signed his own compensation checks without a board member or department official confirming the payment was supported and accurate.

Rush-Henrietta Central School District – Credit Cards and Purchase Cards (Monroe County)
District officials did not ensure that credit card and purchase card charges were properly approved and supported. Therefore, they could not be determined whether all charges were for appropriate district purposes. Additionally, officials did not ensure that credit card charges were reconciled in a timely manner and audited. Auditors reviewed 680 credit card and purchase card charges totaling $168,831 and determined that 538 charges totaling $156,982 had one or more exceptions. 410 charges totaling $144,142 were paid prior to audit and approval by the claims auditor. Another 355 charges totaling $104,258 required pre-approval but were not properly approved, and 82 charges totaling $6,199 for the facilities and transportation departments were not independently audited. The claims auditor who reviewed and approved the charges also maintained and administered the purchase cards for these departments. Auditors found 288 charges totaling $64,925 did not have adequate support, including a specific district purpose, a receipt or the required business expense reports.

Remittance (Wyoming County)
The tax collector did not remit collections to the town supervisor and county treasurer within the timeframes established by state law. As a result, funds were not provided to finance town and county operations in a timely manner. The tax collector did not remit taxes to the town supervisor at least weekly, as required by state law. The tax collector made one payment totaling approximately $800,000 to the county treasurer in April 2024, instead of paying three separate required payments totaling $706,991 in February, $53,702 in March and $36,747 in April. As of Sept. 25, 2024, the tax collector had not yet remitted approximately $1,600 in interest and penalties to the town supervisor, which were collected for late real property tax payments.

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New York State Comptroller Thomas P. DiNapoli again warns that “People who steal from the New York State public employees' retirement systems will be caught and held accountable"

On December 30, 2024, a woman was sentenced to five years' probation and paid full restitution after being convicted of stealing nearly $85,000 in New York state pension payments. Deanna Hansen, the retiree's daughter, pleaded guilty to felony grand larceny in June 2024 before Judge Roger D. McDonough in Albany County Court.”

Hansen’s father had retired from the state in March 2003 and was receiving a direct deposit of his pension into a bank account. He died in April 2020, at which time the pension payments should have stopped. 

In July 2022, the state retirement system learned Hansen’s father had died and stopped payments. However Hansen's daughter had access to her deceased father’s bank account and ultimately stole $84,754.13 in New York State pension payments to which she was not entitled.  

The Comptroller also reported a Rochester woman pleaded guilty to stealing more than $121,000 in state pension checks that were sent to her deceased grandmother. 

The Comptroller thanked his partnership with Monroe County District Attorney Doorley and Sheriff Baxter, together with Assistant District Attorney Greg Clark and Chief of the Public Integrity/Economic Crimes Bureau, "for prioritizing these offenses that victimize our entire state.” 

DiNapoli said. “My office will continue partnering with law enforcement to protect the pension system and its members.” “Elona Roberts abused a system that is meant for dedicated public servants who spend long careers working for the people of their communities,” noted District Attorney Doorley said. “

After Elona Roberts' grandmother retired from her job as a maintenance supervisor for Monroe County in December 1998, she received a monthly pension check. When she passed away in 2017, the state pension system was not informed of her death and checks continued to be sent. Roberts forged her grandmother’s name as an endorsement and deposited 66 checks into her own back account. She spent the money on personal expenses such as household bills, jewelry, and hotels, in addition to making cash withdrawals.

When the pension system learned that Roberts’ grandmother had passed away, DiNapoli’s office launched an investigation, culminating in Roberts’ confession to the crime.

Roberts pleaded guilty on Monday to grand larceny in Monroe County Court before Judge Stephen T. Miller. She is due back in court for sentencing on March 7. 

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Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by emailing a complaint to investigations@osc.ny.gov or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.

 

Termination of a hospital investigator's employment recommended by a New York City Office of Administrative Trials and Hearings Administrative Law Judge

Administrative Law Judge [ALJ] Michael D. Turilli recommended termination of a hospital investigator [Employee] found guilty of engaging in a pattern of discourteous conduct, insubordination, and unsatisfactory work performance.

At the trial the Employee’s co-workers, subordinates, and supervisors testified to her behavior at work, which included instances of name-calling, yelling, failing to supervise her employees, making false statements, and refusing to perform certain assignments.

Although Employee denied the allegations and testified that she believed she was being harassed and targeted by management, the ALJ found that appointing authority had adequately proved Employee was discourteous, insubordinate, and incompetent over the course of 18 months, and recommended Employee be dismissed from her position.

Because the Employee had ample notice that her unprofessional conduct could result in disciplinary action and still failed to change her performance, choosing instead to blame management and deny accountability, Judge Turilli determined that termination of the Employee was the appropriate remedy, notwithstanding  her minor disciplinary record over her long tenure within the hospital system.

Click HERE to access Judge Turilli's findings and recommendation posted on the Internet, which recommendation was adopted by the appointing authority. 

A Reasonable Disciplinary Penalty Under the Circumstances - A NYPPL e-book focusing on determining an appropriate disciplinary penalty to be imposed on an employee in the public service of the State of New York and its political subdivisions in instances where the employee has been found guilty of misconduct or incompetence. For more information and access to a free excerpt of the material presented in this e-book, click on the URL below:

http://booklocker.com/books/7401.html

Another OATH ruling recently posted on the Internet reported that Administrative  Law Judge Kevin F. Casey denied respondents’ and intervener’s motions to dismiss a prevailing wage proceeding, finding that Article 9 of the New York State Labor Law was applicable to workers who cleaned and disinfected subway cars during the COVID-19 pandemic. Click on Office of the Comptroller v. LN Pro Services, LLC & Fleetwash, Inc. to access Judge Casey's ruling posted on the Internet.

N. B.: OATH posts employment opportunities on the New York City's Jobs portal and on its website. Click here to View current openings. Just posted: Oath's Trials Division is currently seeking a Calendar Unit Supervisor, a Chief Law Clerk, and a Law Clerk.

Work product of an attorney protected from disclosure under color of New York State's Freedom of Information Law

The Appellate Division unanimously affirmed a Supreme Court's sustaining an agency's Records Access Officer's denial of an attorney's Freedom of Information Law request for access to a District Attorney's Datasheet concerning the attorney's client.

The Appellate Division opined the Supreme Court "properly concluded, after an in camera inspection of the Datasheet that the subject datasheet constituted attorney work product protected from disclosure by CPLR 3101(c)* and that it need not be disclosed to the attorney subject to redactions."

* See Public Officers Law §87[2][a]

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

Position Classification descriptions issued by the New York State Department of Civil Service

The New York State Department of Civil Service issued the following New York state position descriptions on December 30, 2024:

• Workforce Programs Specialist Series
• Senior Forest Appraiser
• Tax Compliance Representative 1-3
• Consumer Representative 1-3
• Assistant Architect
• Job Training Partnership Specialist 2-3
• Public Health Specialist Series
• Director Forensic Services
• Quality of Care Facility Review Specialist 1-4
• Quality of Care Facility Review Specialist 1-2 (Nursing)
• Call Center Quality Assurance Specialist 1-3
• Claims Services Representative Series
• Unemployment Insurance Accounts Examiner Series
• Instructor Of The Blind Series
• Licensing Examiner 1-4
• Correctional Services Employee Investigator Series
• Multimedia Forensic Analyst 1-2

To view all Classification Standards issued by the Department of Civil Service, visit: https://www.cs.ny.gov/tsplan/tsp_search.cfm

Paid Family Leave webinar for employers and HR professionals scheduled by the New York State Workers' Compensation Board

Paid Family Leave [PFL] is employee-paid insurance that provides employees with job-protected, paid time off from work to bond with a new child, care for a family member with a serious health condition, or assist when a spouse, domestic partner, child, or parent is deployed abroad on active military service.

Since PFL began in 2018, benefits have been significantly enhanced to further improve the lives of working New Yorkers and their families, including more time off, more uses for PFL, and more financial security.

The New York State Workers’ Compensation Board [WCB] will host a free PFL webinar specifically for employers and HR professionals to share what’s new for 2025 on Tuesday, January 14, 2025; 12:00 p.m. – 1:00 p.m. The presentation will include information concerning the higher maximum weekly benefit amount and the updated employee contribution rate. This one-hour, online webinar session will also provide an overview of New York State’s landmark PFL benefit, including eligibility, and "how you take it". In addition, there will be time at the end of the webinar for questions.

Click here to Register.

New York State offers complete details on PFL at PaidFamilyLeave.ny.gov, including updates for 2025. Visit the employer page for helpful resources, including employer forms, fact sheets and past webinars.

Click here to Sign up to receive PFL news via e-mail, including information on future webinars. Help is also available via a toll-free PFL Helpline at (844) 337-6303, Monday through Friday, 8:30 a.m. – 4:30 p.m.

If interested individuals cannot attend this webinar, the WCB invites those interested to visit its Internet site by clicking Webinar FAQs.

New guidance addressing the filing a Notice of Objection (Form C-8.1B) to a bill for treatment promulgated by the New York State Workers' Compensation Board

The New York State Workers’ Compensation Board (Board) is issuing new guidance to payers regarding improper filings of the Notice of Objection to a Payment of a Bill for Treatment Provided (Form C-8.1B), which have increasingly become a problem.

Medical treatment is the most prevalent area in which the Board is called upon to a resolve a dispute. While a certain amount of disagreement between a provider and a payer is expected, submissions of C-8.1B forms represent the largest volume of forms filed with the Board, with nearly one million filed in the last year, and increasing at a 20% rate. Many of these legal objections should never have been filed, and when they are, they congest the resolution process at the Board, unduly delaying decisions in cases with proper disputes, and unduly burdening the Board and all affected stakeholders.

To help eliminate this unnecessary congestion and utilize resources as efficiently as possible, the Board is providing the following guidance regarding the submission of C-8.1B forms.

The Board said "Payers are NOT to file Form C-8.1B based on any of the following reasons:"

• When the amount billed for a CPT code exceeds the amount designated by the applicable fee schedule and the payer pays the bill in accordance with the medical fee schedule amount; explanation of benefits (EOB) is sufficient;
• When the payer reduces the amount of the bill to 12, 15, or 18 relative value units for evaluations and modalities in accordance with the applicable medical fee schedule ground rule; EOB is sufficient;
• In response to a duplicate medical bill, including a reconsideration request submitted by a provider for a previously submitted medical bill, where the payer has already filed a C-8.1B form; EOB is sufficient;
• When the payer reduces the amount of the bill pursuant to a contractual agreement with the medical provider (e.g., network or PPO); EOB is sufficient;
• After an Administrative Award has been issued in response to a Request for Decision on Unpaid Medical Bill (Form HP-1.0); instead file the HP-2 form;
• In response to an Order of the Chair or a Notice of Resolution from the Medical Director’s Office resolving a prior authorization request (PAR) in favor of the provider;
• When the case has an approved Section 32 waiver agreement for indemnity and medical benefits and the medical date of service is after the approved agreement; EOB is sufficient.

Similarly, to increase the Board’s processing efficiency, payers MUST follow the guidance below when submitting C-8.1B forms:

• At least one objection reason must be selected in Section C.
• Object on the grounds that the claim is controverted (Section C - box 1), only when the claim is both NOT established and the payer has filed either a FROI or SROI-04.
• Do not object on the basis that the medical bill was submitted untimely (Section C - box 6) unless the medical bill is more than 120 days from the date of service.
• Include the provider’s WCB Authorization # and NPI number in the appropriate fields on the form. Do not enter the provider’s billing company in box 9. Enter either the name of the provider who provided the treatment or the facility name.
• File a FROI transaction simultaneous to the submission of the C-8.1B form if a FROI has not yet been filed in the underlying claim.
• Include the WCB Document ID # on the C-8.1B form if a copy of the bill is already in the Board's file. It is not necessary to attach an additional copy of the bill.
• If the basis for the C-8.1B form is non-compliance with the Workers’ Compensation Board’s New York Medical Treatment Guidelines, in addition to checking the appropriate box (e.g., 2, 13-19), payers are required to set forth the applicable guideline and, ideally, a brief explanation included in box 20 about why the treatment deviated from the guidelines.
• If the request for treatment was denied (box 3), and not subsequently granted by the Board, please attach supporting documentation supplying when the treatment was denied, and the corresponding document ID in the case file.
• If box 12 is utilized, the appropriate CARC/RARC code(s) and the corresponding description(s) should be included. In addition, an explanation should be provided to support the objection which may include supporting evidence and/or reference to a document number already in the case file.  

Nothing herein is or should be construed as suggesting that payers are limited in filing objections to medical treatment. However, Workers’ Compensation Law (WCL) §13-a(6)(b) requires that those objections must be reasonable and warranted. In the event that payers continue to file C-8.1B forms in the situations delineated above, payers may be subject to penalties pursuant to WCL §§13-a(6)(b) and/or 114-a(3) where applicable.

Questions?

The Board said in the event "you have questions regarding this guidance, please contact New York State Workers' Compensation Claims Operations at (877) 632-4996 and select Option 5."

New York State Comptroller Thomas P. DiNapoli releases Municipal and School Audits

On December 31, 2024 New York State Comptroller Thomas P. DiNapoli issued the following local government and school audits.

   Click on the text highlighted in color to access the item posted on the Internet

Gowanda Central School District – Financial Management (Erie County)  The board and district officials did not properly manage fund balance and reserve accounts. The board and district officials’ budgeting practices were not transparent and resulted in the district exceeding the statutory limit on surplus fund balance by $4.5 million, and missing opportunities to lower real property taxes. The board and district officials consistently overestimated general fund appropriations from 2020-21 through 2022-23 by a total of $13.1 million and appropriated nearly $6.7 million of fund balance that was not needed or used. Adopted annual budgets during the same period gave the impression that the district would have operating deficits totaling $6.7 million when it actually had operating surpluses totaling $9.9 million. The district also overfunded the employee benefit accrued liability and unemployment reserves by nearly $1.9 million and did not use funds held in six reserves with balances totaling $10 million.

Orleans County – Court and Trust Funds  Pursuant to a court order, certain assets may be provided to the court and then delivered to the county treasurer for safekeeping. Auditors identified one action totaling $2,382.66 that was not properly turned over to the State Comptroller. The treasurer stated that she did not turn over the money because the action was still pending in court. However, the money had been in the treasurer’s custody for over three years and, therefore, should have been turned over, as required.

Chenango County Industrial Development Agency (CCIDA) – Audit Follow-Up  Auditors determined that CCIDA officials have demonstrated minimal progress implementing corrective action in a follow up examination. Of the 10 audit recommendations included in a 2022 audit, one recommendation was fully implemented, one recommendation was partially implemented, and eight recommendations were not implemented.

Town of Hector – Employee Compensation (Schuyler County)  Town employee compensation was not always authorized, accurate and supported. Of the 53 employee records reviewed, auditors determined that town officials paid 10 employees a total of $150,155 that was not authorized by the board and inaccurately accrued and recorded leave time totaling 1,830 hours valued at $38,586 for 20 of 23 eligible employees. An employee was also paid $5,271 for a separation payment that was not approved by the board.

Wayland-Cohocton Central School District – Building Access Accounts and Badges (Steuben County)  District officials did not properly manage and monitor building access accounts or badges used to access buildings. District officials did not establish written procedures identifying who is responsible for managing and monitoring building access accounts. Although auditors determined that the district had a process for granting access and adding information into the building access system for employees during the hiring process, including background checks, the district did not have an adequate process for granting access to non-employees. Almost half of the active building access accounts and badges were for non-employees. Officials also did not establish a service level agreement with the third-party contractor that issued and managed 209 building access accounts and badges. Auditors also found access was granted to 39 individuals participating in continuing education programs without conducting any background checks and issued 14 building access accounts and badges without verification.

Town of Castile – Tax Collection Remittance (Wyoming County)  The clerk did not remit collections to the town supervisor and Wyoming County treasurer within the timeframes established by town law. As a result, funds were not provided to finance town and county operations in a timely manner. The clerk did not remit taxes totaling approximately $1.3 million to the supervisor at least weekly. The clerk made one payment totaling approximately $2.8 million to the treasurer in April 2024 instead of paying three separate required payments totaling approximately $2.5 million in February, $132,877 in March and $107,896 in April. The board did not audit the clerk’s records as required and, as a result, did not know that the clerk was incorrectly remitting collections.

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Links to selected items focusing on govenmental operations posted on the Internet during the week ending January 3, 2025.

Click on the text highlighted in color to access the material posted on the Internet.

A Comprehensive Approach to Election Cybersecurity As voters cast their ballots, cybersecurity teams need to detect any cyber intrusions, respond to them without delay and recover quickly, a daunting challenge for government officials working with limited funds and time. Download the full paper for more information about enhancing cybersecurity throughout the entire election process. DOWNLOAD

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• Closing the Justice Gap: How Courts Are Leveraging GenAI for Greater Accessibility
• Judicial Ethics: Navigating the AI Era
• Amid a Flurry of AI Ethics Opinions, New Mexico Weighs In

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New York State Comptroller Thomas P. DiNapoli office issues reports on transparency of village fiscal activities

On December 20, 2024 New York State Comptroller Thomas P. DiNapoli’s office released a report and series of audits reviewing compliance by certain villages with financial reporting and other requirements. [To access the report and the audits posted on the Internet, CLICK on the text highlighted in color].

By law, a village’s chief fiscal officer (CFO) is required to file an annual financial report (AFR) with the State Comptroller’s office 60 to 120 days after the close of their fiscal year. The AFR must be made available to the public and provides detailed information about the village’s financial position and results of operations, and include revenues, expenditures, debt, cash reserves and fund balance.

“Villages provide critical services to residents, and many are doing a good job of giving the public a transparent look at how they are spending taxpayer money,” DiNapoli said. “Those that don’t file are leaving taxpayers in the dark about how their money is being used or if fiscal problems exist. Financial transparency is a cornerstone of good governance, promoting accountability and reducing opportunities for financial mismanagement.”

For fiscal year 2023, 246 (46%) of the state’s 532 villages filed their AFR with the State Comptroller on time, 210 villages (40%) filed late, after the statutory due date, and 76 villages (14%) had not filed as of Sept. 13, 2024. These 76 villages, with a total population of more than 369,000 people, levied taxes totaling $288 million. Eleven of the 76 villages filed as of Dec. 13, 2024.

While the share of villages filing their AFR on time improved from 30% to 46% since 2019, the number of villages that did not file at all in 2023 grew from six in 2019 to 76. Failure to file by the statutory deadline or not filing raises questions about the financial standing of the village as well as the general effectiveness of its management, and leaves residents, policymakers, and other interested parties without information regarding the fiscal performance of their government.

Auditors selected 30 villages to examine and determined 25 did not file their AFR for fiscal year 2023, four filed their report significantly late (an average of 331 days), and only one filed within the 90-day requirement. All but one of the localities’ CFOs were aware of the filing requirement.

DiNapoli’s auditors found that 21 of the selected villages failed to maintain complete and up to date accounting records. One village did not record $2.2 million in payroll expenditures in its accounting records along with $2 million in property tax revenues. In 16 villages, the CFOs provided incomplete financial reports, with poor or late records, to the boards.

Incomplete records make it difficult for boards to develop realistic budgets, adopt proper property tax levies, monitor operations, or conduct long-term planning. They also prevent taxpayers from assessing a village’s fiscal standing and determining whether property tax increases are justified or needed. Auditors found 26 of the 30 villages raised property taxes 1% to 21% from fiscal year 2022 to fiscal year 2024, but 18 of these had incomplete records, including five that had tax levy increases exceeding 10%.

Village boards are also required to annually audit or cause to be audited the village’s AFR and supporting records. Auditors found no evidence of an annual audit being conducted for 28 of the 30 selected villages. Without an audit there is little independent verification that transactions have been accurately recorded, cash is properly accounted for, and records are complete and up to date. Although two village boards engaged certified public accountants (CPAs) for fiscal year 2023, the CPA audits were not completed in a timely manner, with the CPA audits presented to the two boards nine and 16 months after fiscal year-end, respectively.

Village boards oversee the policy, financial, and ethical framework for village operations. DiNapoli urged board members to better uphold their responsibilities and comply with transparency requirements by making financial information accessible and by performing annual audits. His office also provides training sessions for village board members on their duties and responsibilities: 

Transparency and Accountability of Fiscal Activities in Villages 

Individual Village Audits

Village of Almond – Transparency of Fiscal Activities

Village of Cedarhurst – Transparency of Fiscal Activities

Village of Copenhagen – Transparency of Fiscal Activities

Village of Great Neck – Transparency of Fiscal Activities

Village of Holley – Transparency of Fiscal Activities

Village of Hoosick Falls – Transparency of Fiscal Activities

Village of Lisle – Transparency of Fiscal Activities

Village of Mount Kisco – Transparency of Fiscal Activities

Village of North Syracuse – Transparency of Fiscal Activities

Village of Pomona – Transparency of Fiscal Activities