New York City Administration for Children's Services

Internal Controls Over Payments to Foster Care Contractors (Follow-Up Review)

The New York City Administration for Children's Services (ACS) is responsible for the health and safety of children in foster care and for reimbursing foster care contractors. In our prior audit report 98-N-9, we examined the internal controls over these reimbursements and identified material weaknesses. Moreover, when we audited the ACS payments to four selected contractors, we found that three of the four appeared to have been overpaid, and these potential overpayments totaled $1,037,458. In our follow-up review, we found that ACS had taken some steps to strengthen its internal controls over its payments to foster care contractors, but had taken no action to investigate, and as appropriate recover, the potential overpayments we identified.

For a complete copy of Report 2001-F-5 click here.
For a copy of the 90-day response click here.