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August 12, 2010

DiNapoli's Office Completes Audit of Nassau Health Care Corp.

State Comptroller Thomas P. DiNapoli today announced his office completed the audit report: Nassau Health Care Corporation (NuHealth) – Faculty Practice Plan (FPP).

“My office’s audits of local governments improve their financial management practices,” DiNapoli said. “These audits are tools for local officials to make sure proper policies and procedures are in place to protect taxpayer dollars and provide the best possible service these taxpayer dollars can deliver. While NuHealth has done a good job with parts of its Faculty Practice Plan, improvements can be made to oversee the allocation of FPP funds.”

DiNapoli’s auditors found that corporation officials properly classified FPP revenues and properly included FPP payments to physicians and dental staff as salary. Additionally, auditors found that NuHealth’s finance department managers monitor the chairpersons’ allocation of FPP to physicians in their departments.

However, NuHealth does not have specific procedures in place requiring the chairpersons to submit support or documentation of what method they used to determine the allocation of FPP funds to physicians in their departments. The chairpersons have total discretion of how FPP departmental funds are distributed to the physicians in their respective departments. Auditors also found that because officials did not update the FPP bylaws, NuHealth made a total of $31,100 in unauthorized FPP payments to five physicians after their resignation, retirement, or dismissal dates.

For a copy of the audit, see:



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