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NYS Comptroller


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State Education Department
Educators for Children, Youth and Families, Inc. Use of Contract Funds (Follow-Up)

Issued: August 13, 2013
Link to full audit report 2012-F-16

To determine the extent of implementation of the three recommendations included in our initial audit report, Educators for Children, Youth and Families, Inc. Use of Contract Funds (Report 2007-S-128).

Our initial audit report, which was issued on August 20, 2010, examined whether Educators for Children, Youth and Families, Inc. (Educators) appropriately used State funds received from the State Education Department (SED) and the Office of Children and Family Services (OCFS) under grant contracts for the period July 1, 2002 through June 4, 2008. New York State awards grants and contracts to non-profit community-based organizations that offer after-school services to children. To receive reimbursement for its program-related expenditures, Educators submitted periodic expenditure reports to SED and OCFS. We reviewed claims amounting to $1.8 million, out of $3.2 million in contract payments, to determine if the claims were properly supported and appropriate. These contract payments pertained to seven contracts, four administered by SED and three administered by OCFS. We found that Educators could not support or justify $883,530 of expenditures claimed. Of this amount, $687,360 was paid by SED and $196,170 was paid by OCFS. The $196,170 of unsupported expenditures paid by OCFS represented over 98 percent of the total expenditures submitted for payment to OCFS. We attributed the unsupported, inappropriate and potentially fraudulent transactions to an inactive Board of Directors. In addition, we found no evidence that there were any policies, procedures or controls in place to monitor Educator's financial activities.

Key Findings

  • We determined that SED and OCFS officials have made some progress in addressing the matters in our initial report. However, no funds have yet been recovered and all three recommendations have only been partially implemented.

Key Recommendations

  • Officials at SED and OCFS are given 30 days after the issuance of the follow-up review to provide information on any actions that are planned to address the unresolved issues discussed in this review.

Other Related Audits/Reports of Interest

State Education Department and Office of Children and Family Services:  Educators for Children, Youth and Families, Inc. Use of Contract Funds (2007-S-128)

State Government Accountability Contact Information:
Audit Director: John Buyce
Phone: (518) 474-3271; Email:
Address: Office of the State Comptroller; Division of State Government Accountability; 110 State Street, 11th Floor; Albany, NY 12236