State Education Department

Skip to Content

Login   Subscribe   Site Index   Contact Us   Google Translate™

NYS Comptroller


State Education Department
Examination of Payments to Tough Man, Inc.
(Issued: 03/01/2019)


Our Office examined payments the State Education Department (SED) made under contracts C813016, C81403A, T815055, and T816040 to Tough Man Inc. (Tough Man).  The objectives of our examination were to determine whether funds were used for the contracts’ purposes, and whether the expenses claimed exceeded program revenues as required under the terms of the contracts.


Tough Man is a not-for-profit corporation formed to sponsor community sporting events such as walks and races in New York.  SED made five payments totaling $150,000 under the contracts for services provided during the period July 1, 2013 through June 30, 2017.  The contracts provide funding for Tough Man to provide an in-school program to students and to operate triathlons for kids and teens.

The contracts prohibit payment for expenses reimbursed or reimbursable from other funding sources.  This includes registration fees, sponsorships, licensing fees, and royalties.  Therefore, Tough Man was eligible to request contract funds when the expenses for contract-related activities exceed the revenues generated (and other reimbursements received) up to the contract value – collectively $150,000 for the contracts we examined.  Each student paid a registration fee to participate in the triathlons supported by the contracts and the Tough Man websites identify multiple corporate sponsors for triathlons.

Key Findings

SED did not request, and there is a material risk Tough Man did not maintain, sufficient, appropriate evidence to demonstrate the expenses claimed under the contracts were incurred for contract purposes and exceeded program revenues and other reimbursements by $150,000, as required.

Key Recommendations

  • Require Tough Man to provide sufficient, appropriate evidence to support that the expenses claimed under the contracts were incurred for contract purposes and exceeded program revenues by $150,000, as required.    Recover as appropriate any amount for which Tough Man cannot properly account.
  • Ensure future payments to Tough Man are supported by sufficient, appropriate evidence and ensure the amount requested represents expenses which exceed revenues and funding from other sources.

For a complete copy of Report 2018-BSE2-001, click here.

Division of Contracts and Expenditures
Bernard J. McHugh, Director of State Expenditures

Phone: (518) 474-4868 Email:
Address: Office of the State Comptroller, Division of Contracts and Expenditures
110 State Street, 10th Floor; Albany, NY 12236