New York City Administration for Children's Services

Internal Controls Over Services Payments to Preventive Services Providers

The New York City Administration for Childrenís Services (ACS) comprises the following child service programs: Child Welfare, Office of Child Support Enforcement, Head Start and Agency for Child Development. ACS records show that, in fiscal year 1999, ACS budgeted $68 million for 69 contractors to deliver preventive services. ACS contracts allow providers to receive an initial advance payment and subsequent payments based on expenditures. ACS requires contractors to provide certified financial statements, including necessary supplemental schedules, do year-end reconciliations and a produce a cost allocation plan to support certain expenses. ACS also evaluates contractorsí performance in meeting quality standards and in serving an agreed upon number of families. However, we found that some contractors had not provided the independent audits and schedules needed to support payments they received. Further, they had not performed timely year-end reconciliations or done cost allocations needed to support the reimbursement the received for indirect costs. We also found that deficiencies in ACS monitoring allowed some contractors with histories of internal control deficiencies and/or poor performance to have their contracts renewed.

For a complete copy of Report 99-N-10 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.