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NYS Comptroller


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March 21, 2014, Contact: Press Office (518) 474-4015

Comptroller DiNapoli Releases State Audits

New York State Comptroller Thomas P. DiNapoli announced today the following audits have been issued:

Department of Corrections and Community Supervision, Selected MWBE Purchases by Various Facilities (2013-S-30)
Between February and September 2013, five Department of Corrections and Community Supervision facilities purchased $21,000 of maintenance supplies through AIW, a registered Minority and Women-Owned Business Enterprise (MWBE) vendor. These purchases were for relatively low dollar amounts; typically under $2,500. Auditors found DOCCS’ purchases through AIW complied with all existing MWBE rules and requirements, and that AIW is a legitimate, qualified MWBE vendor certified by New York state. However, the extent of any "value-added" by AIW's role in these transactions is not readily apparent; especially in cases where facility staff still did the work of obtaining prices, selecting vendors and picking up the purchased products.

City University of New York, Selected Employee Travel Expenses (2012-S-98)
As part of a statewide initiative to determine whether the use of travel money by selected government employees was appropriate, auditors looked at travel expenses for the highest-cost travelers in the state. Auditors examined charges made to one CUNY employee's travel card totaling $125,410. This employee was the fleet manager, responsible for administering CUNY's Central Office vehicle fleet. Most of the $125,410 in travel expenses we examined was appropriate. However, auditors identified several areas in which CUNY could strengthen controls.

Department of Health, Rebates and Discounts on Physician-Administered Drugs (Follow-Up) (2013-F-23)
An audit report issued in July 2012, determined DOH had neither maximized rebate collections on physician-administered drugs nor ensured the proper billing for 340B drugs. These problems cost the Medicaid program an estimated $24.3 million. In a follow-up, auditors found DOH has made progress in addressing the problems identified in the initial audit. However, significant actions are still needed as millions of dollars in rebates remain uncollected.

Department of Health, Overpayments for Services Also Covered by Medicare Part B (Follow-Up) (2013-F-30)
An audit report issued in June 2012, examined whether DOH overpaid health care providers' Medicaid claims for Medicare Part B deductibles and coinsurance. The audit covered the year 2008. For that period, auditors identified 259,152 Medicaid claims that were overpaid by nearly $8.5 million because providers did not properly report Medicare payment data on those claims. In a follow-up, auditors found DOH has made considerable progress in addressing the issues identified in the initial audit. This included the recovery of improper payments totaling $4.8 million from providers who inaccurately billed Medicare Part B claims. However, further actions are still needed.

Metropolitan Transportation Authority, Long Island Rail Road - Service Diversions for Maintenance and Capital Projects (2010-S-63)
A "service diversion" takes place when LIRR must close all or a part of a track line for capital projects or maintenance. When service diversions are underway, trains are diverted from their regular route so workers can safely access the tracks. Diversions should be scheduled in the most cost-effective manner and to minimize the disruption on the riding public. Auditors found the annual outage plan for service diversions was reduced by 1,483 days (29 percent) in 2009 and 1,655 (35 percent) in 2010. These revisions were not approved in writing by executive management, but should have been. The number of days planned for specific aspects of service diversions was not always supported and train tracks were not always turned over to work crews in a timely manner to accomplish the work necessary for the service diversions. While the public is informed of large diversions, LIRR Public Affairs needs to do more to inform the public of other planned diversions.

Metropolitan Transportation Authority, Selected Aspects of Bus Procurement (2011-S-16)
The Metropolitan Transportation Authority (MTA) did not apply for federal State of Good Repair discretionary grant monies for certain bus purchases from May 2010 to June 2011 and, as result, MTA officials potentially missed an opportunity to obtain $256 million of grant monies. In addition, MTA did not follow procedures by failing to notify the MTA Board when two contracts were awarded prior to a fair and reasonable determination. MTA officials could not justify buying 90 buses for each of five test fleets totaling about $228 million.

State Education Department, All Services for Kids, Inc., Compliance with the Reimbursable Cost Manual (2012-S-19)
All Services, located in Fresh Meadows, N.Y. provides special education itinerant teacher services (SEIT) to disabled children between the ages of three and five. The New York City Department of Education (DoE) paid All Services tuition and fees according to rates established by the State Education Department. Auditors identified $66,680 in unsupported and/or inappropriate costs charged to All Services, including $53,546 in personal service expenses, including compensation paid to the husband of the executive director for services that he did not perform, and $12,986 in non-personal service expenses, including rental expenses, cell phones used by the executive director's children and cable television.


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