New York City Administration for Children's Services
Payments to Day Care Providers The New York City Administration for Children's Services (ACS) contracts with not-for-profit organizations to provide subsidized day care programs for eligible children. We examined ACS's controls over its payments to these contractors and found that improvements are needed. For example, to provide assurance that contract payments are consistent with the services provided by the contractors, ACS relies on audits conducted by independent auditors hired by the contractors. However, we found that the audits are not always conducted in accordance with ACS requirements, and as a result, the audits are less likely to provide the assurance sought by ACS. We also identified certain payment errors, but because ACS managers were not fully cooperative in providing us with access to information and staff, we could not determine whether these errors were isolated incidents or indicative of systemic problems.
For a complete copy of Report 98-N-11 click here.
For a copy of the associated follow-up report click here.