New York State Comptroller Thomas P. DiNapoli announced today the following audits and examinations have been issued.
New York City Department of Housing Preservation and Development (HPD): Purchasing Practices at the Linden Plaza Mitchell-Lama Housing Development (2017-N-5)
Auditors examined $6.1 million in contract payments to 11 vendors and $4.6 million in non-contract payments to 163 vendors, finding HPD’s rules are limited in scope and do not encourage Linden Plaza officials to make purchases at competitive prices. The rules do not require competitive bidding for contracts that are less than $100,000 or for purchases made without a contract, regardless of dollar amount. As a result, none of the $10.7 million in purchases made by Linden Plaza were subject to competitive bidding. With limited exception, there was no documentation indicating that Linden Plaza had conducted price analyses or taken any other steps to determine the reasonableness of prices.
Office for People With Developmental Disabilities (OPWDD): Oversight of Young Adult Institute (YAI Network) Inc.'s Family Support Services Contract (2017-S-29)
OPWDD needs to improve its fiscal oversight of the YAI Network to ensure that its expenses are program appropriate and consistent with contract requirements. The YAI Network claimed $47,418 (13.7 percent of the auditors’ sample) for personal service costs that were not properly supported, and inappropriately billed OPWDD for $15,042 in estimated related fringe benefit costs. Auditors also found YAI did not maintain supporting documentation for another $28,553 in family support services.
Office of Alcoholism and Substance Abuse Services (OASAS): Drug and Alcohol Treatment Program: Provider Claiming of Depreciation Expenses (Follow-Up) (2018-F-11)
An initial audit report found OASAS was not effectively monitoring Drug and Alcohol Treatment program contracts. Auditors found providers inappropriately claimed $2,675,045 in depreciation expenses between Jan. 1, 2010 and June 30, 2014, of which $2,220,807 was funded by OASAS and $454,238 could potentially have been used for inappropriate increases to providers’ future program budgets. In a follow-up, auditors found OASAS has implemented all three recommendations contained in the original audit report.
Office of Temporary and Disability Assistance (OTDA): Use of Electronic Benefit Cards at Prohibited Locations (Follow-Up) (2018-F-15)
An initial report issued in July 2017, found OTDA was not performing comprehensive data analysis testing of monthly transactions, focusing on repeated violations at the same potentially prohibited location. Additionally, the office was not including out-of-state transactions in its monthly reviews nor notifying other states where potential violations were identified. In a follow-up, auditors determined OTDA has made progress addressing the issues identified in the original audit.
Department of Health (DOH): Medicaid Program: Reducing Medicaid Costs for Recipients With End Stage Renal Disease (ESRD) (Follow-Up) (2018-F-8)
In an initial report, auditors identified 3,015 Medicaid recipients with ESRD who met the Medicare eligibility criteria, but who were not enrolled in Medicare at the time their medical services were provided. Had DOH informed the recipients about their entitlement to Medicare and helped them enroll, the Medicaid program could have saved as much as $146 million over the six-year audit period ended Dec. 31, 2015. Furthermore, the Medicaid program could have saved as much as $69 million over the next three years subsequent to the initial audit period. In a follow-up auditors found DOH has made progress addressing the problems identified in the initial audit.
Department of Health (DOH): Medicaid Program: Improper Medicaid Payments to a Transportation Provider (2018-S-10)
The provider reviewed is a private proprietary corporation that has been providing taxi services to Medicaid recipients since September 2012. During the period from Sept. 26, 2012 to Dec. 31, 2016, Medicaid paid the provider $2.4 million for 26,345 transportation claims. Auditors found the provider did not maintain the required documentation to support $1.4 million in transportation claims paid to the provider.
Department of Health (DOH): Medicaid Managed Care Organization Fraud and Abuse Detection (Follow-Up) (2018-F-1)
An initial audit released in July 2016 determined that United HealthCare (UHC) and Amerigroup made improper and questionable payments totaling more than $6.6 million to providers who were excluded from the Medicaid program. Furthermore, recoveries of improper payments by UHC and Amerigroup were very limited. In a follow-up auditors found DOH has made some progress in correcting the problems identified in the initial audit report, but significant actions are still needed.
OVS’ internal controls generally ensure that its expenditures for crime victim compensation claims, forensic rape examinations (FRE) and victim assistance program (VAP) grants were made only to eligible victims and for eligible victim services. Still, auditors identified minor discrepancies in OVS’ verification of FRE provider licenses.
An initial audit issued in April 2016, found that NFTA prepared a multi-year and annual capital budget plan as required by Public Authorities Law, but could not demonstrate how these plans addressed its highest capital needs. In addition, auditors found that NFTA management did not maintain documentation to support their decisions on the projects they selected for the capital plan. In a follow-up, auditors found that NFTA has implemented all three recommendations contained in the original audit report.
New York State Health Insurance Program: UnitedHealthcare (United): Overpayments for Out-of-Network Anesthesia Services Provided at In-Network Ambulatory Surgery Centers (ASCs) (2017-S-35)
Auditors identified overpayments totaling $991,357 that occurred because United paid for out-of-network anesthesia services provided at ASCs that were contractually required to use in-network anesthesia providers. Auditors recommended United recover the $991,357 in overpayments and refund the state.
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