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August 30, 2010



Comptroller DiNapoli Releases Audits



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

Office of General Services, Contract with EBSCO Subscription Services, Inc. (2007-R-6)
Under the terms of the contract with the Office of General Services (OGS), EBSCO’s service charges are not to exceed certain specified amounts. However, auditors found that EBSCO was routinely overcharging state agencies for services, and estimated that overcharges totaled about $1 million since the contract started in 2005. Auditors recommended that OGS work with EBSCO to determine the extent to which the overcharged amounts should be recovered.  They also recommended that OGS modify the contract and more closely monitor future billings.

Department of Correctional Services, Oversight of Revenue Contracts (2009-S-33)
DiNapoli’s auditors found opportunities for DOCS to better maximize all potential revenues from certain revenue contracts, as well as, opportunities for DOCS to better monitor these contracts. DOCS could increase its revenues under the inmate Phone Home System by including administrative and operating costs, which totaled about $2.1 million over our approximately three year audit period.
 
State University of New York, Compliance with Executive Order 111 Requirements to Purchase Power from Renewable Energy Sources (Follow-Up Report) (2010-F-15)
Executive Order 111, which was issued in June 2001, requires all state agencies to purchase a certain portion of their electricity (at least 10 percent by 2005 and 20 percent by 2010) from renewable sources. The State University of New York (SUNY) operates 34 campuses that are subject to the Executive Order. In audit 2008-S-76, auditors found that SUNY was purchasing some of its power from renewable sources, but not enough to meet the 10 percent target. The plans had not been enacted due to a lack of resources. When auditors followed up with SUNY officials, they found that they had made progress in addressing the matters identified, but additional improvements were needed.

Department of Civil Service, New York State Dental Program: Accounting for Voided Dental Claims and Voided Checks (2010-S-1)
DiNapoli’s auditors found that the state overpaid $753,975 over the four years covered by the audit, because certain contractors’ costs were not properly accounted for. Auditors recommended that the overpayments be recovered and certain improvements be made in the contractor’s accounting system.

Department of Labor, Oversight of Revenue Contracts (2009-S-16)
The Department of Labor has certain contracts under which it is supposed to recover its costs from the contractors.  Auditors examined whether the department was appropriately receiving and accounting for this revenue. They found that the department appropriately billed, collected and promptly deposited in the correct accounts all contract revenue received during the audit period. However, because of reporting errors the revenue was not properly accounted for on the State’s Central Accounting System.

Division of Homeland Security and Emergency Services, Oversight of Revenue Contracts (2009-S-19)
 The Division of Homeland Security and Emergency Services has certain contracts under which it is supposed to recover its costs from the contractors. Auditors examined whether the division was appropriately receiving and accounting for this revenue. They found that the division appropriately billed, collected and promptly deposited in the correct accounts all the contract revenue being reviewed. However, because of reporting errors the revenue was not properly accounted for on the State’s Central Accounting System.

Office of Mental Health, Contracts for Personal and Miscellaneous Services (2009-S-42)
During a three-year audit period, the Office of Mental Health (OMH) had 819 state-funded contracts for personal and miscellaneous services. Auditors examined whether OMH was adequately justifying the need to initially contract out for such services and periodically reassessing whether such contracts could be deferred, eliminated or reduced, and found that this was not adequately done.

State Government Accountability
The Office of the State Comptroller regularly audits state agencies, public authorities and New York City agencies. Auditors ensure that programs achieve their established goals, funds are used efficiently and assets are adequately protected against fraud, waste and abuse. DiNapoli’s office completes approximately 200 state audits and annually identifies hundreds of millions in savings and fraud each year.



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