New York State Comptroller Thomas P. DiNapoli announced today the following audits have been issued:
New York City Department of Education, Non-Competitively Awarded Contracts (Follow-Up) (2010-F-26)
The New York City Department of Education must comply with applicable procurement requirements when awarding non-competitively bid contracts. In audit report 2008-N-1, DiNapoli’s auditors examined whether the department complied with requirements and found that it didn’t. When auditors followed up, they found that department officials had made significant progress in correcting the problems identified in the initial report.
Department of Health, Inappropriate Medicaid Payments for Dental Services Provided to Patients With Dentures (Follow-Up) (2010-F-33)
The Department of Health administers the Medicaid program. In audit 2008-S-125, DiNapoli’s auditors reviewed claims for a five-year period and found that dentists may have been overpaid as much as $2.9 million for services provided to patients with dentures. Auditors determined that the Medicaid claims processing system, eMedNY, lacked the controls necessary to detect and prevent such overpayments. Auditors recommended that appropriate controls be developed and implemented. When they followed up, auditors determined that department officials made some progress in correcting the problems they identified but improvements were still needed.
City University of New York, Kingsborough Community College: Selected Financial Management Practices (Follow-Up) (2010-F-39)
The City University of New York consists of eleven senior colleges, six community colleges, and several other specialized and professional schools. In audit report 2008-N-9, DiNapoli’s auditors examined whether one of the community colleges (Kingsborough) complied with requirements relating to payroll, procurement and waiving of tuition, and found certain instances of non-compliance in all three areas. When auditors followed-up, they found that officials had made progress in correcting the problems they identified.
State Education Department, St. Francis de Sales School for the Deaf: Selected Financial Management Practices (Follow-Up) (2010-F-40)
St. Francis de Sales School for the Deaf is one of 11 private schools that receive operating aid directly from the state to provide educational services to disabled students. In audit report 2008-S-160, auditors identified a number of internal control weaknesses in the areas of procurement, cash disbursements and payroll. Auditors also found that the school’s board of trustees was not providing effective oversight of financial operations. When auditors followed up, they found that officials had made significant progress in correcting the problems identified, but improvements were still needed.
Office of Parks, Recreation and Historic Preservation, Natural Heritage Trust, Sources of Trust Revenues (2009-S-11)
The Natural Heritage Trust maintains over 200 custodial accounts for account holders, including the Office of Parks, Recreation and Historic Preservation. DiNapoli’s auditors examined whether Office of Parks revenue was incorrectly deposited into the custodial accounts of the trust. They found that more than $3.5 million in revenue was deposited into trust accounts incorrectly. Auditors recommended the Office of Parks recover the funds and improve controls over revenue.
Metropolitan Transportation Authority, Minority and Women’s Business Enterprise Reporting (2010-S-9)
State agencies and public authorities are required to promote the participation of minority-owned business enterprises (MBEs) and women-owned business enterprises (WBEs) in state contracts and procurement opportunities. Specifically, agencies must establish annual goals for such participation and make a “good faith” effort to achieve these goals. DiNapoli’s auditors examined the Metropolitan Transportation Authority’s performance and found that it was establishing annual goals and making a good faith effort to reach them. However, the MTA’s goals were unreasonable, and as a result, they have consistently fallen short of their goals. Auditors also found that the MTA was not accurately reporting results of its efforts and was overstating its procurements. Auditors recommended improvements to comply with contract requirements.
