New York State Comptroller Thomas P. DiNapoli announced today the following audits have been issued.

The Division of Military and Naval Affairs — Internal Controls Over Selected Financial Operations (Follow-Up) (2022-F-4)

The Division of Military and Naval Affairs (DMNA) manages New York State’s military forces, which are composed of the New York Army National Guard, the New York Air National Guard, the New York Naval Militia, and the New York Guard. An audit issued in 2020 found numerous weaknesses in DMNA’s internal controls to ensure that state assets were appropriately managed and safeguarded. In a follow-up audit, auditors found that DMNA has made significant progress in addressing the issues identified in the initial audit, implementing all nine recommendations that were made.

State Education Department — Oversight of Pupil Transportation Services (Follow-Up) (2022-F-5)

Approximately 2.3 million children are transported to school daily across the state, with one third riding School District-owned buses, one third riding contracted buses, and the remaining third utilizing public transportation. The New York State Education Law requires the State Education Department to take steps to ensure that school bus drivers, monitors, and attendants are qualified and properly trained. A 2020 audit found that the Department could improve its efforts to monitor School Districts’ compliance with its requirements and, consequently, did not have assurance that drivers, monitors, and attendants across the state were qualified and had completed required training. The follow-up audit found that Department officials made limited progress in addressing the issues identified in the initial audit report.

NYC Department of Transportation — Street Construction-Related Permits (2020-N-6)

The NYC Department of Transportation (DOT) issues 150 different types of sidewalk and roadway construction permits that cover activities such as street openings, sidewalk construction and installation of canopies over sidewalks. DOT Highway Inspections and Quality Assurance (HIQA) is the agency’s enforcement unit and conducts construction site inspections to ensure permittees comply with the laws, regulations, and permit specifications and stipulations. Auditors determined that DOT did not always ensure that permittees were in compliance with street permit requirements.

Department of Taxation and Finance — Collection of Petroleum Business Tax and Motor Fuel Excise Tax (Follow-Up) (2021-F-30)

An audit issued in 2020 looked at the systems and practices that the Department of Taxation and Finance put in place to allow it to appropriately collect Petroleum Business Tax and Motor Fuel Excise Tax, as they are required to do by law. The audit uncovered weaknesses in the Department’s efforts to appropriately collect taxes and suggested recommendations for how the Department could improve oversight of distributors and tax collection processes. In a follow-up, auditors found the Department has made significant progress in addressing the issues identified in the initial report, implementing both recommendations that were made.

United Cerebral Palsy Association of Nassau County, Inc. — Compliance With the Reimbursable Cost Manual

United Cerebral Palsy Association of Nassau County, Inc. (CPN) is a State Education Department (SED)-approved, non-profit special education provider located in Roosevelt. Among other programs, CPN provides preschool education services to young children with disabilities. CPN is reimbursed for these services through rates set by SED. Auditors looked at the fiscal year ended June 30, 2018, and found several issues with CPN’s reporting, including nearly $160,000 in ineligible costs reported by CPN on its Consolidated Fiscal Reports.

All My Children Day Care — Compliance With the Reimbursable Cost Manual

All My Children Day Care (AMC) is a New York City-based not-for-profit organization authorized by SED to provide Special Education Itinerant Teacher (SEIT) services to young children with disabilities. AMC also operated other programs, including the New York City Administration for Children’s Services’ Early Learn program. Auditors found that on its annual Consolidated Fiscal Reports, AMC failed to provide certain key documents it should have retained to support the expenses claimed on its annual CFRs, including over $3 million in unsupported costs for fiscal year 2014-15.

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