Purpose

The objective of our examination was to determine whether contract payments made by the Department of Transportation (Department) to WSP USA Inc. (WSP) were appropriate.

Background

New York State has approximately 17,607 highway bridges, of which 43% (7,571) are owned by the Department. The Department is responsible for ensuring all bridges that carry highway traffic in the 11 regions of the State are inspected in accordance with State and federal mandates. The Department contracted with WSP to perform bridge inspections within Region 8 of New York State. The contract and its current amendments total $41 million for the period January 11, 2022 through May 31, 2026. We examined a sample of high-risk expenses totaling $7.6 million from the 11 vouchers totaling $10.8 million the Department certified as appropriate and paid to WSP from October 1, 2022 through September 30, 2023.

Key Findings

The Department approved for payment 1,890 labor hours totaling $107,040 where the documentation did not support the amounts billed. Additionally, the Department paid WSP $16,659 for Railroad Protective Liability Insurance. According to the terms and conditions of the contract, WSP is required to maintain Railroad Protective Liability Insurance at its own expense. Therefore, this insurance is not eligible for reimbursement.

Key Recommendations

• Review and update controls and provide training to staff to prevent the approval of inappropriate and unsupported expenses.
• Review the contract terms to ensure they align with the Department’s intent. 
• Recover improper payments identified by our audit. 
• Review payments outside of this audit scope and recover improper payments.