Department of Correctional Services
New York City Human Resources Administration

Contract with the Osborne Association: Billings for Job Placement Services

The Osborne Association was contracted by the New York State Department of Correctional Services to provide job placement services to work release participants in three State prisons. The Osborne Association was also subcontracted by two different contractors of the New York City Human Resources Administration (HRA) to provide job placement services to economically disadvantaged adults. In response to a complaint alleging that the Osborne Association billed New York State and New York City for identical job placement services provided to the same recipients, we audited the billings submitted by the Osborne Association under the various contracts. We found that the Osborne Association had submitted a total of $302,747 in duplicate billings for placement and support services provided to 118 individuals. We recommended that certain of these payments be recovered by HRA and certain improvements be made in the procedures used by HRA in monitoring its contracts. We also determined that $62,904 of the amount paid to the Osborne Association by the Department of Correctional Services should be disallowed and recovered, because some of the services billed by the Osborne Association related to recipients who were ineligible for the services and some of the payroll expenses claimed by the Osborne Association related to employees who were not performing contract work at the time the services were claimed.

For a complete copy of Report 2001-R-7 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.