New York City Department of Homeless Services
Accuracy of State Aid Claims (Follow-Up Review) Most of the homeless shelters administered by the New York City Department of Homeless Services (DHS) are operated by not-for-profit organizations or private companies under contracts or other agreements with DHS. The costs incurred by the shelters are reimbursed by DHS, and a portion of DHS's payments to these shelters is reimbursed by New York State. In our prior audit report 97-N-8, we examined the internal controls over the State aid reimbursement process and identified a number of weaknesses. Because of these weaknesses, the claims submitted by DHS were less likely to be accurate. Our review of selected claims identified inaccuracies that resulted in a net overpayment to DHS of $1.1 million. We recommended that the overpayment be refunded to New York State and certain improvements be made in the procedures used by DHS to claim State reimbursements. In our follow-up review, we found that all of our prior recommendations have been implemented by DHS.
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