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

New York City Department of Homeless Services (DHS) – Oversight of Contract Expenditures of Institute for Community Living, Inc. (2020-N-4)

DHS contracted with the Institute for Community Living to provide a range of services for the homeless. Auditors determined that DHS did not effectively monitor its contract to ensure reported costs are allowable, supported, and program related. DHS did not complete required expenditure reviews or ensure that year-end closeouts were completed timely. Consequently, for the three fiscal years ended June 30, 2019, auditors identified $2,376,462, or 9.7% of all reported costs, that did not comply with the requirements in the Fiscal Manual, Cost Manual, and contract, including: $1,234,488 in personal service costs, $925,932 in other than personal service costs, and $216,042 in indirect costs. Auditors also estimated approximately 155,760 meals (valued at $444,690) were discarded over the audit period.

Office of Parks, Recreation and Historic Preservation – Oversight of Construction Management Contracts (Follow-Up) (2022-F-16)

The initial audit found that Parks paid over $229,000 in fees under a construction management contract with the Dormitory Authority of the State of New York (DASNY) for a $25 million Niagara Falls State Park revitalization project. The $229,000 fee paid under the contract could have been avoided if DASNY had used a term contract. Furthermore, DASNY did not provide detailed support for payments made under the contract; therefore, Parks could not monitor payments made under this contract as effectively as term contracts. The follow up found Parks officials made progress in addressing the issues identified in the initial report, implementing one of its two recommendations and partially implementing the other.

Department of Agriculture and Markets – Oversight of the Farm-to-School Program (Follow-Up) (2022-F-9)

Under the Farm-to-School Program, Agriculture and Markets provides financial assistance to promote the purchase of State farm products by schools, universities, and other educational institutions to promote their purchase of State farm products. The initial audit report, issued April 19, 2021, found the department needs to improve monitoring of both program expenditures and recipient performance to ensure recipients use funds as intended and achieve program goals. The follow up found officials made significant progress in addressing the problems identified in the initial audit report, implementing both of its recommendations.

Department of Health (Medicaid Program) – Cost Saving Opportunities on Payments of Medicare Part C Claims (Follow-Up) (2022-F-14)

For Medicaid recipients who are also enrolled in Medicare, Medicaid typically pays for any cost-sharing liabilities, such as Medicare deductibles, coinsurance, and copayments. The 2021 initial audit found that New York’s current Medicaid payment rules for recipients also covered by Medicare Part C cost-sharing liabilities have significantly higher costs compared to the allowable alternatives. The initial report’s audit recommendation was not implemented because Department of Health officials declined to take actions to address the potential cost savings identified.

Department of Health (Medicaid Program) – Improper Medicaid Payments Involving Fee-for-Service Claims for Recipients With Multiple Client Identification Numbers (Follow-Up) (2022-F-2)

Each individual who applies for a Medicaid benefit is assigned a Client Identification Number (CIN). Although Medicaid recipients may have more than one CIN, only one CIN should have active eligibility at a time. Auditors initial report, issued on September 17, 2020, identified $47.8 million in improper Medicaid payments on behalf of recipients with multiple active CINs. The follow up found officials have made little progress in addressing the problems identified in the initial audit report and significant action is still required. Of six initial audit recommendations, two were partially implemented and four have not been implemented.

Department of Health (Medicaid Program) – Improper Medicaid Payments for Terminated Drugs (Follow-Up) (2022-F-7)

Auditors issued our initial audit report on September 17, 2020. The audit objective was to determine whether the Medicaid program made improper payments for drugs dispensed after they were removed from the market (terminated) for safety or commercial reasons. The audit concluded the State’s Medicaid program improperly paid $29 million for drugs dispensed after their termination date. Department officials made minor progress in addressing the problems identified in the initial audit report. Also, since the initial audit, Medicaid improperly paid another $11 million for drugs dispensed after their termination date, some of which were recalled for safety reasons. Of the five initial audit recommendations, two were implemented and three were not.

Department of Health – Management of Indoor Air Quality for Individuals With Asthma (2020-S-59)

While DOH, through its contracts with Local Health Departments (LHDs), has identified poor indoor environmental conditions that impact residents with asthma, it needs to improve its oversight and monitoring of LHDs to ensure that individuals identified with asthma in targeted areas continue to receive appropriate assistance. Lack of oversight meant the DOH could not determine if LHDs are raising asthma awareness and helping families manage asthma in area of risk. LHDs did not sufficiently perform required one-year follow up visits to households where at least one individual had asthma.

State Education Department (Preschool Special Education Audit Initiative) – Little Meadows Early Childhood Center, Inc. – Compliance With the Reimbursable Cost Manual (2021-S-4)

New York City-based Little Meadows is authorized by the State Education Department (SED) to provide full-day Special Class, half-day Special Class, Integrated Preschool, and half-day Integrated Preschool Special Education services for children with disabilities who are between the ages of 3 and 5 years. For the three fiscal years ended June 30, 2018, Little Meadows reported approximately $10.2 million in reimbursable costs to SED and auditors identified $395,644 in reported costs that did not comply with SED requirements.

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