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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts


Oyster Bay Water District – Payments in Lieu of Health Insurance (2017M-43)


Released: June 2, 2017 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review payments in lieu of health insurance coverage for the period January 1, 2015 through October 31, 2016.

Background

The Oyster Bay Water District is located in the Town of Oyster Bay in Nassau County and provides water to about 8,800 customers. The District is governed by an elected three-member Board of Commissioners. The District’s 2016 budgeted appropriations totaled approximately $2.6 million.

Key Findings

  • Because the plan was not implemented in a prudent and cost effective manner, the buy-back program actually increased the District’s cost of providing health insurance by $37,179.
  • District officials do not require participants to certify on an annual basis that they are still eligible to receive payments.

Key Recommendations

  • Perform a cost benefit analysis and review the District’s eligibility requirements to ensure that the program benefits the District and is implemented in the most prudent and cost effective manner.
  • Require participants to certify on an annual basis that they are still eligible to receive health insurance buy-back program payments.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236