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NYS Comptroller

THOMAS P. DiNAPOLI

News

From the Office of the New York State Comptroller

Thomas P. DiNapoli

January 11, 2017, Contact: Press Office (518) 474-4015

State Comptroller DiNapoli Releases State Audits

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

New York City Administration for Children's Services (ACS): Administration of Non-Competitive and Limited-Competition Contracts (Follow-up) (2016-F-10)
An initial audit issued in June 2015 determined whether ACS properly awarded, extended, and renewed non-competitive and limited-competition contracts with vendors. Auditors found ACS officials did not provide sufficient oversight of contractor performance. Officials renewed or extended contracts with some vendors that had poor performance. In fact, 12 sampled contract vendors received less-than-satisfactory performance ratings. The vendors’contracts totaled $114.1 million. For 9 of the 12 vendors, children in their care were abused by employees or foster parents. Consequently, in some cases, the health and safety of children were placed at risk. In a follow-up report, auditors determined ACS has not made progress in addressing the issues identified in the initial report. Of the five prior recommendations, none were implemented. 

State Education Department (SED): Universal Pre-Kindergarten Program: Monitoring of Health and Safety Requirements (2016-S-10)
The Universal Pre-Kindergarten (UPK) program was established to provide all four-year-olds in the state with the opportunity for an early childhood education. SED regulations require buildings and classrooms used for UPK to be safe and to comply with applicable fire safety, health, and building codes, and for equipment and furnishings to be safe and suitable for children and maintained in a state of good repair and sanitation. Auditors found SED does not directly monitor UPK providers for health and safety, instead relying on school districts operating UPK programs, or the Office of Children and Family Services, to ensure that UPK providers are complying with health and safety requirements. There is a wide disparity in the way UPK providers outside New York City are monitored for health and safety. Some providers are inspected regularly for health and safety, while others are reviewed mainly for program curriculum. There is a lack of consistency in how school districts inspect their UPK provider locations for health and safety compliance.

State Education Department: Fred S. Keller School, Compliance with the Reimbursable Cost Manual (2015-S-98)
For the three years ended June 30, 2014, auditors identified $455,117 in costs that were not eligible for state reimbursement. The costs included $433,588 in non-personal service costs, which consisted of $224,430 in unnecessary consultant costs; $101,625 in insufficiently documented consultant costs, vehicle costs, and credit card purchases; $78,474 in consultant costs that were not related to the preschool special education programs; and $29,059 in non-reimbursable purchases.

State Education Department: Benchmark Family Services (BFS) Inc., Compliance with the Reimbursable Cost Manual (2016-S-47)
For the fiscal year ended June 30, 2013, the personal service costs claimed by BFS auditors tested were in compliance with SED’s requirements for reimbursement. However, auditors identified $18,012 in other than personal service costs that BFS reported that did not comply with SED’s requirements.

State Education Department: Jowonio School, Compliance with the Reimbursable Cost Manual (2016-S-48)
For the three fiscal years ended June 30, 2014, auditors identified $118,110 in claimed costs that were ineligible for state reimbursement. These costs included: $98,572 in personal service costs, which consisted of ineligible employee bonuses; and $19,538 in other than personal service costs, which consisted of $16,656 in insufficiently documented vehicle costs, $2,370 in non-reimbursable interest, and $512 in non-reimbursable purchases.

State Education Department: Westchester Community Opportunity Program Inc., Compliance with the Reimbursable Cost Manual (2016-S-33)
For the year ended June 30, 2013, auditors identified $87,017 in ineligible costs that WestCOP reported for reimbursement. The ineligible costs included $74,714 in other than personal service costs, including $44,262 in lease expenses that were not properly allocated, $22,766 in non-program-related expenses, $5,989 in inadequately documented expenses. Auditors disallowed $12,303 in personal service costs, including $10,525 for staff costs in excess of approved staffing ratios. Auditors also determined WestCOP did not disclose related-party transactions with three vendors on its CFR, as required.

State Education Department: JCC of Mid-Westchester, Compliance with the Reimbursable Cost Manual (2016-S-21)
For the three fiscal years ended June 30, 2014, JCC claimed $90,900 in ineligible costs for its rate-based preschool special education programs. The ineligible costs included:  $26,923 in personal service costs that consisted of staffing for teacher aides in excess of approved staffing ratios, incorrectly allocated salaries and fringe benefits, personal commuting expenses, ineligible employee bonuses, and compensation from a prior year; and $63,977 in other than personal service costs that consisted of non-allowable depreciation, incorrectly allocated administrative expenses, non-reimbursable interest and other non-reimbursable expenses.

State Education Department: New York Center for Child Development Inc., Compliance with the Reimbursable Cost Manual (2015-S-101)
For the three fiscal years ended June 30, 2014, auditors identified $776,901 in reported costs that did not comply with SED reimbursement requirements and recommend such costs be disallowed. The ineligible costs included $308,905 in inadequately documented consulting costs, $254,268 in over-allocated staff salaries for three employees and $65,705 in maintenance and repairs, cellphone, and supplies and materials expenses that were incorrectly allocated to the SED cost-based programs audited.

State Education Department: Books and Rattles Inc., Compliance with the Reimbursable Cost Manual (2016-S-25)
For the three fiscal years ended June 30, 2014, auditors identified $242,357 in reported costs that did not comply with SED’s requirements and recommend that such costs be disallowed. The ineligible costs included $115,949 in personal service costs and $126,408 in other than personal service costs. Among them were: $60,690 in unsupported compensation, including $46,684 paid to employees of another organization; $57,097 in vehicle expenses that did not comply with SED requirements; and
$39,027 in unsupported allocated costs for shared employees.

For access to state and local government spending and more than 50,000 state contracts, visit www.openbooknewyork.com. The easy-to-use website was created by DiNapoli to promote openness in government and provide taxpayers with better access to the financial workings of government.

 

Albany Phone: (518) 474-4015 Fax: (518) 473-8940
NYC Phone: (212) 383-1388 Fax: (212) 681-7677
Internet: www.osc.state.ny.us
E-Mail: press@osc.state.ny.us