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December 15, 2010


DiNapoli Releases Government Audits

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

Department of Transportation, Contracts for Personal and Miscellaneous Services (2009-S-66)
During the audit period, the Department of Transportation (DOT) had about 1,231 active personal and miscellaneous service contracts in place with a total value of $2.7 billion. Auditors reviewed a sample of 45 contracts valued at $116.7 million and found that the DOT could justify 26 of the 45 contracts, but there was no documentation to justify the remaining 19 contracts totaling $68 million. Auditors determined that, while the DOT did reduce contract spending, it did not provide documentation to demonstrate that it was reassessing contracts. Auditors recommended certain improvements be made.

Division of Human Rights, Contracts for Personal and Miscellaneous Services (2009-S-83)
For the audit period reviewed, the Division of Human Rights had five contracts with a total value of $2.32 million in effect for personal and miscellaneous services. Auditors reviewed four of the contracts totaling $2.29 million. Auditors found that the Division of Human Rights did not justify its need to award these contracts and recommended certain improvements be made.
Rochester Genesee Regional Transportation Authority, Management of Employee Overtime (2009-S-103)
According to Rochester Genesee Regional Transportation Authority records, overtime increased from $2.8 million to $3.5 million from 2006-2009. Auditors found that authority officials had taken steps to manage and control employee overtime. However, when auditors tested overtime payments to seven of the 15 employees, they found that 537 overtime hours totaling $17,572 were not justified, due to a lack of documentation. Auditors also found that some workers routinely started before their regular shift and were paid overtime. Authority officials generally agreed with auditors’ recommendations to improve overtime controls.

Office of Mental Health, Creedmoor Psychiatric Center Continuing Medical Education Credits (Follow-up) (2010-F-29)
Physicians at Creedmoor Psychiatric Center are re-appointed every two years and are required to earn at least 40 hours of Continuing Medical Education (CME) credits before they are re-appointed. In audit report 2008-S-99, auditors found that 14 of the physicians re-appointed during the audit period did not meet this requirement. When auditors followed up, they found that officials had made progress in correcting the problems.

State Education Department, St. Mary’s School for the Deaf: Procurement and Contracting Practices (Follow-up) (2010-F-35)
St. Mary’s School for the Deaf receives almost all its operating aid directly from the state while providing educational services to disabled students. In audit report 2008-S-126, auditors examined the school’s procurement and contracting practices and found widespread noncompliance with the state’s requirements. As a result, there was little assurance the school was obtaining goods and services at the lowest available prices. When DiNapoli’s auditors followed up they found that school officials made some progress in correcting the problems they identified, but additional improvements are needed.

Department of Health, Monitoring of Medicaid Payments for Nursing Home Bed Reserve Days (2010-S-21)
Auditors looked at whether nursing home claims submitted to Medicaid for bed reserve days were appropriate, within limits, and if any Medicaid overpayments were made. Auditors looked at claims filed by two nursing homes which accounted for over 60 percent of these payments. They found that claims both exceeded the number of days allowed and had been systematically miscoded for days that should have been billed as standard care. Because the reimbursement rates were the same for standard and reserve care auditors determined that no significant overpayments occurred. However, the law was amended in June 2010 to reduce the number of days for bed reserve claims. Therefore, if the billing errors continue, overpayments will be made in the future.



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