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

Metropolitan Transportation Authority (MTA): Employee Qualifications, Hiring, and Promotions (Follow-Up) (2021-F-27)

A January 2019 audit determined that, while the MTA allows employees to transfer across its subsidiary agencies, it did not ensure they met the qualifications for the new position into which they were hired or promoted, including education, experience, and operating license requirements and, for operating titles such as Train Operators, Conductors, and Bus Operators, drug/alcohol screening and medical examinations. The follow-up review found that the MTA made progress in addressing the issues identified. Of the 14 recommendations from the initial report, four were implemented, seven were partially implemented, two were not implemented, and one was no longer applicable.

New York City Department of Youth & Community Development (DYCD): Oversight of Afterschool and Summer Youth Employment Contracts (Follow-Up) (2022-F-11)

The initial audit, issued in June 2019, determined DYCD was not adequately overseeing its contracts with the Greater Ridgewood Youth Council, Inc., totaling $13.9 million, to administer DYCD’s summer employment and afterschool programs. Auditors identified numerous contract and program policy violations, such as improper hiring practices, inappropriate expenditures, and duplicate compensation costs for overlapping services. The follow-up found DYCD made only limited progress in addressing the issues identified in the initial report. Of the report’s 10 recommendations, five were partially implemented and five were not implemented.

Department of Civil Service: Empire Plan Members With Dual Family Coverage (Follow-Up) (2022-F-13)

The initial audit, issued in January 2021, determined that for certain organizations that participate in NYSHIP, their employees may be enrolled in two Family coverages – as both a primary policy holder and a dependent of a NYSHIP-eligible family member who also elected Family coverage. The dual coverages are duplicative and associated with significant unnecessary premium costs for both the member and the participating organization. Participating organizations may be unaware that employees have dual Family coverage, and unable to counsel them regarding more cost-effective options, because Civil Service, citing Health Insurance Portability and Accountability Act (HIPAA) rules, does not share data that would allow them to make this determination. The follow-up found that Civil Service implemented both recommendations from the initial audit; however, officials also concluded that information sharing was not feasible, despite auditors pointing out HIPAA exceptions that would allow it.

Department of Health (Medicaid Program): Accuracy of Medicaid Eligibility Determined by NY State of Health (Follow-Up) (2022-F-15)

The initial audit, issued in September 2020, identified $16.6 million in improper and questionable Medicaid payments. The improper payments stemmed from processing weaknesses in the NY State of Health (NYSOH) system as well as a lack of eligibility and enrollment data reconciliations that resulted in recipients, including some who were deceased, remaining eligible beyond their actual eligibility period. The follow-up found that the Department of Health made some progress addressing the problems identified, such as correcting certain deficiencies in NYSOH data processing. However, further actions are required to prevent additional improper payments. Of the initial report’s six audit recommendations, four were partially implemented and two were implemented.

New York City Civilian Complaint Review Board (CCRB): Complaint Processing (2020-N-9)

CCRB investigates civilian complaints against the New York City Police Department that allege excessive or unnecessary force, abuse of authority, discourtesy, and use of offensive language. The audit found that CCRB does not complete complaint investigations in a timely manner – taking an average of 14 months in the first half of 2021. Lengthier time frames can drive cases closer to the 18-month statute of limitations and jeopardize CCRB’s ability to hold officers accountable for misconduct. CCRB did not have measures in place to pre-emptively monitor lengthy investigations or to analyze all delays to determine their root cause in order to proactively address and prevent them. In addition, CCRB did not always comply with its established procedures and guidelines intended to ensure that investigations of complaints are conducted in compliance with New York City regulations, that the resulting recommendations are appropriate, and that substantiated cases of misconduct are advanced for disciplinary action.

Department of Health (DOH): Medicaid Program – Improper Overlapping Medicaid and Essential Plan Enrollments (2020-S-66)

Weaknesses within DOH’s automated claims processes resulted in recipients who should have been enrolled in either Medicaid or the State’s Essential Plan (EP) being improperly enrolled in both – causing both Medicaid and EP programs to make claim payments on their behalf. For the audit period, auditors determined that, during the periods of overlapping enrollment, DOH made Medicaid payments totaling $40.3 million and EP payments totaling $18.4 million. Case reviews by DOH are required to determine which program made improper payments.

New York City Department of Small Business Services (SBS): Selected Aspects of Supporting Small Businesses (2020-N-10)

SBS’ Employee Retention Grant (ERG) Program was intended to assist businesses and non-profit organizations across all five boroughs retain employees during the COVID-19 pandemic. SBS awarded 3,411 in grants totaling nearly $25 million, but did not provide adequate oversight overall to ensure the grants were awarded and used as the Program intended. Among other issues, auditors found that SBS awarded grants to businesses that did not meet the eligibility requirements, awarded some businesses higher amounts than they were entitled to, and did not follow up with businesses to verify that they retained their employees, as required.

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