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January 25, 2012


Comptroller DiNapoli Releases Audits


New York State Comptroller Thomas P. DiNapoli announced today the following audits have been issued:

New York City Department of Environmental Protection (DEP), Controls Over Computers (2010-N-7)
DEP does not maintain comprehensive inventory records, nor does it conduct a periodic physical inventory or routinely tag this equipment to identify it as department property. During field visits, department officials were unable to locate 10 percent of the 200 computers auditors selected for verification – although they subsequently located all but one. Because of the time that had elapsed auditors cannot be assured that these computers were actually being used by department staff for appropriate activities. Of the 199 computers eventually located, 36 were not being used, but were found in storage – many still in their original packing. The unused computers cost more than $25,000.

State Education Department (SED), New York Institute for Special Education: Selected Financial and Management Practices (Follow-Up) (2011-F-7)
In audit report 2008-S-157 auditors examined whether SED officials had established and maintained an adequate system of internal control over the school's financial operations. Auditors found that SED had not performed certain criminal background checks, some employees from a non-state program were enrolled in the New York State and Local Employees Retirement System, and interest earned on state funds were not used to offset the costs of state-funded programs. Twelve recommendations were made to officials and following up, auditors found that significant progress had been made in correcting the problems identified in the initial report. However, improvements were still needed.

New York City Department of Citywide Administrative Services, Sale and Disposal of Surplus Assets - Follow-Up (2011-F-22)
In audit report 2008-N-17 auditors examined whether department officials properly accounted for and maximized revenue from the sale and disposal of surplus assets.  Auditors found that officials properly accounted for revenue received from the sales transactions tested. However, certain improvements in the department’s practices could increase the amount of revenue earned from the sale and disposal of surplus assets.  The department could also realize additional revenues if certain surplus vehicles were sold as scrap. Since the initial audit, department officials have made progress in correcting some of the problems identified.

New York State Health Insurance Program, Overpayments for Claims Submitted by Nanuet Medical Services - Follow-Up (2011-F-23)
During the 47-month period ended November 30, 2008, United HealthCare overpaid Nanuet $601,600.  The overpayments occurred because United HealthCare’s claims processing system did not have controls to limit the number of times a transcutaneous electrical nerve stimulation (TENS) service can be paid for a single individual.  Auditors recommended that United HealthCare recover the overpayments and implement controls to limit payments to only legitimate claims. United has made significant progress in correcting the problems identified in the initial report. United implemented controls to stop inappropriate claims for TENS services and is pursuing recovery of the overpaid amounts. United identified an additional $359,700 in overpayments that occurred outside of the audit scope period and is pursuing recovery of $961,300, which includes the $601,600 identified in the initial report and the additional $359,700 identified since.



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