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

Metropolitan Transportation Authority – MTA Bus Company and New York City Transit – Management and Maintenance of Non-Revenue Service Vehicles (2020-S-31)

New York City Transit (Transit) and the MTA Bus Company (MTA Bus) maintain a fleet of 1,950 non-revenue service vehicles used to support transit operations. Despite an estimated value of $150 million and a replacement cost of $216.7 million, the audit determined the fleet and related costs were not being adequately managed. Routine and annual preventive maintenance inspections were not being performed as required, increasing the risk of a shortened useful life or the need for more repairs. Also, there was no inventory system to track parts purchased for vehicle maintenance, resulting in parts that were missing or untraceable to a vehicle. Notably, for the audit period, maintenance costs totaled more than $50 million, nearly $9 million over budget.

State Education Department (Preschool Special Education Audit Initiative) – Cantalician Center for Learning – Compliance With the Reimbursable Cost Manual (2022-S-7)

Cantalician, a not-for-profit special education provider serving students from Erie, Genesee and Niagara counties, is authorized by the State Education Department to provide Preschool Special Class (over 2.5 hours per day) and Preschool Integrated Special Class (over 2.5 hours per day) to children with disabilities who are between the ages of 3 and 5 years. For the fiscal year ended June 30, 2017, Cantalician reported approximately $2.23 million in reimbursable costs for these programs. The audit identified $358,254 in costs that did not comply with SED’s requirements for reimbursement.

State Education Department (Preschool Special Education Audit Initiative) – Abilities First, Inc. – Compliance With the Reimbursable Cost Manual (2022-S-23)

Abilities First, Inc. (AFI) is a not-for-profit special education provider located in Wappingers Falls that serves students from three counties in the Mid-Hudson region. AFI is authorized by the State Education Department to provide Preschool Special Class (over 2.5 hours per day), Preschool Integrated Special Class (over 2.5 hours per day) and Preschool Integrated Special Class (2.5 hours per day) to children with disabilities who are between the ages of 3 and 5 years. For the fiscal year ended June 30, 2019, AFI reported more than $4.41 million in reimbursable costs for these programs. The audit identified $236,209 in costs that did not comply with SED’s requirements for reimbursement.

Department of Health – Improper Medicaid Payments for Individuals Receiving Hospice Services Covered by Medicare (Follow-Up) (2022-F-31)

A prior audit report, issued in December 2020, identified about $50 million in actual and potential Medicaid overpayments, cost-savings opportunities, and questionable payments for services provided to recipients enrolled in Medicare-covered hospice care. The follow-up found that the Department of Health made some progress in addressing the problems identified, but more actions were needed. Namely, the Office of the Medicaid Inspector General had yet to materially recover the overpayments.

Homes and Community Renewal – Housing Trust Fund Corporation – Oversight of the Residential Emergency Services to Offer Home Repairs to the Elderly (RESTORE) Program (Follow-Up) (2022-F-18)

From 2017 to 2019, Homes and Community Renewal (HCR) awarded $6.13 million in RESTORE funds, which benefited about 785 senior citizen housing repair projects. A July 2021 audit found that HCR needed to exercise greater oversight of the program to ensure that funds are awarded appropriately and that program goals are being achieved. For example, flaws in the selection process resulted in some local program administrators (LPAs) being inappropriately awarded funds and others being denied. The audit also found that LPAs were not properly administering the RESTORE program and were not using awarded funds within required time frames to ensure emergency repairs were addressed promptly. Further, the awards served just 36 of the State’s 62 counties. More targeted outreach regarding the RESTORE program could increase statewide participation and result in better distribution of funds. The follow-up determined that HCR made progress in addressing these issues, implementing four of the six audit recommendations and partially implementing two.

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