Office for People With
Developmental Disabilities
Administration of Contingency
Contracts
Issued: May 31, 2012
Link to full audit report 2010-S-28
Link to the 90-day response
Purpose
To determine whether New York State Office for People With Developmental Disabilities (OPWDD)
contingency contract payments, made during the period April 1, 2007, through September 30,
2010, were supported, appropriate, and in compliance with Community Residence Program
guidelines.
Background
OPWDD's Community Residences Program (CR Program) is designed to provide a home
environment setting where individuals with developmental disabilities (residents) can acquire the
skills necessary to live as independently as possible. OPWDD uses third-party Service Providers
(Providers) to provide day-to-day CR Program services. The CR Program is funded primarily by
Medicaid. There is no appeal mechanism for the rates approved for the CR Program. As such,
OPWDD established a process for "contingency contracts." In essence, OPWDD will reimburse
Providers for any CR Program deficits they incur as a result of deficient Medicaid reimbursements.
OPWDD officials developed CR Program guidelines establishing the circumstances under which
contingency contracts are appropriate, and time frames Providers should follow when submitting
their requests for contingency contract monies. During the period April 1, 2007, to May 10,
2010, OPWDD approved 88 contingency contracts corresponding to $20.7 million in associated
payments.
Key Findings
- OPWDD officials processed Provider requests for almost $1 million in contingency contract payments that were submitted significantly beyond allowable time frames.
- Supporting documentation for these requested reimbursements was not available for verification.
- More than $100,000 in reimbursed expenses incurred during years for which records were available were either unsupported or inappropriate.
- In addition, OPWDD officials do not perform their own verification of Provider CR Program costs.
Key Recommendations
- Recoup $16,215 and $92,573, respectively, from Catholic Charities Neighborhood Services (CCNS) and United Cerebral Palsy of New York City (UCP) for the identified unsupported and inappropriate payments.
- Discontinue contingency contract payments immediately to Providers that submit their requests after the allowable time frames.
- To ensure that deficit expenses are supported and CR Program-appropriate, perform periodic audits of the CFR (Consolidated Fiscal Report) data submitted by Providers.
Other Related Audits/Reports of Interest
Office of Alcoholism and Substance Abuse Services: Phase Piggy Back Report 2009-R-1
Office of Alcoholism and Substance Abuse Services: Chemical Dependency Program Payments Report 2007-S-60
State Government Accountability Contact Information:
Audit Director: Frank Patone
Phone:(212) 417-5200; Email: StateGovernmentAccountability@osc.state.ny.us
Address: Office of the State Comptroller; Division of State Government Accountability; 110 State Street, 11th Floor; Albany, NY 12236
