State University of New York Upstate Medical Center

Contracts for Personal and Miscellaneous Services

During the period April 1, 2006 through February 1, 2010, SUNY Upstate Medical University (Upstate) had 665 active personal and miscellaneous service contracts in place totaling $499.8 million. We examined whether SUNY Upstate was adequately justifying the need to initially contract out for such services and periodically reassessing whether such contracts could be deferred, eliminated or reduced to save State funds. We reviewed a sample of 50 contracts valued at $148.8 million and found that Upstate did not maintain sufficient documentation to justify the need for 38 of them totaling $116.3 million. We also determined that Upstate has not been periodically reassessing whether such contracts could be deferred, eliminated or reduced. We recommended certain improvements for Upstate to attain savings relating to these contracts.

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