Office of Mental Health
Contract with Banana Kelly Community Improvement Corporation (Follow-Up Report) The contractor provided services to emotionally disturbed children in New York City. In audit report 2003-R-3, we examined whether billings from the contractor were appropriate. We found that the contractorís billings for payroll expenses (totaling about $422,000) generally were not supported by appropriate documentation. We also found little evidence indicating that the contractor provided the services that were required by the contract. The contractor was being investigated by the State Attorney Generalís Office, which subsequently determined that officials at the contractor had diverted funds for their personal use. We recommended that the Office of Mental Health (OMH) attempt to recover the funds that were paid to contractor, and when we followed up on this recommendation, we found that OMH was attempting to recover the funds.
For a complete copy of Report 2006-F-10 click here.