Purpose 

The objective of our examination was to determine whether payments the Department of Health (Department) made for the Creating Healthy Schools and Communities Program (CHSC) were appropriate and in accordance with the terms and conditions of the grant contracts. 

Background 

The Department entered into 26 grant contracts with 22 grantees to administer the CHSC program to increase opportunities for physical activity and improve nutrition for people in high-need communities. The combined total value of the 26 grant contracts is $39.7 million. We examined expenses from a sample of grantees: Capital Roots, Inc. (Capital Roots); Onondaga County Health Department; Cornell Cooperative Extension of Sullivan County; and The Institute for Family Health. From these four grantees, we examined a judgmental sample of $212,640 out of their $427,798 in contractual service and program material expenses and $100,399 out of their $506,455 in salary expenses.

Key Findings 

We found the Department inappropriately paid Capital Roots $28,664 from budget period funds outside from which the expenses were incurred. St. Peter’s Health Partners’ Center for Community Health Programs (St. Peter’s), a Capital Roots subcontractor, requested the supplier provide invoices with dates that aligned with the prior budget year. The Department also paid Capital Roots $3,413 more than necessary because Capital Roots and St. Peter’s purchased items through a third party instead of buying the items directly from the suppliers. Finally, the Department approved $100,399 in salary expenses, or 100 percent of our sample, that lacked sufficient source documentation to ensure the salary expenses were appropriate.

Key Recommendations 

• Review existing controls and establish additional controls, if necessary, and provide training to staff responsible for reviewing and approving invoices, to ensure payments are appropriate.
• Review salary, contractual service, and program material expenses to determine if the expenses were appropriate and recover any overpayments, including the $28,664 in inappropriate or unnecessary expenses paid to Capital Roots.
• Provide sufficient documentation to support all payments that are being certified as just, due and owing.