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January 29, 2010




Comptroller DiNapoli Releases State and
New York City Audits

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

Department of Civil Service - New York State Health Insurance Program: Payments of Non-Participating Provider's Facility Fee Claims (Report 2007-S-110)
In the New York State Health Insurance Program, the Department of Civil Service administers health insurance programs for public employees. The primary program is the Empire Plan. The Department of Civil Service contracts with United HealthCare to process and pay medical claims for services provided to Empire Plan members. United is contractually obligated to apply cost limits when it pays billings from non-participating providers. Auditors found that United did not apply the cost limitations when it processed facility fee claims submitted by non-participating providers until August 1, 2007. This resulted in United overpaying such claims and, therefore, should refund $4.4 million to the state.

New York City Department of Correction - Rikers Island Central Cashiers Office: Control and Accountability Over Bail Funds (2009-N-7)
Bail for individuals in the custody of the New York City Department of Correction may be posted at the Rikers Island Central Cashiers Office (RICC). RICC is responsible for recording the receipt of such bail funds, depositing the funds in its bank account, and remitting the funds to the New York City Department of Finance for safekeeping. Auditors examined the controls over these bail funds and found the controls were adequate but could be strengthened in some areas.

Department of Health - Oversight of Adult Care Facilities (Follow-Up Report/2009-F-30)
Adult care facilities provide temporary or long-term residential care to adults who are unable to live independently. In a prior audit (2006-S-7), auditors examined whether the Department of Health was inspecting these facilities and investigating complaints about these facilities in accordance with requirements. Auditors found the department generally completed inspections within the required time frame, but it did not always start inspections within the required time frame or issue inspection reports and investigate complaints in a timely manner. When auditors followed up, they had implemented the audit’s recommendations.

New York State Thruway Authority Travel Plaza Revenues and Capital Improvements (2008-S-103)
The New York State Thruway has 27 travel plazas where vendors offer fuel and food to travelers under concession contracts awarded by the New York State Thruway Authority. The concessionaires are to pay a certain amount of rent each month, based on either their fuel deliveries or food sales for the month, and make certain capital improvements to their facilities over the lives of their long-term contracts. Auditors examined the authority’s oversight of the monthly rent payments and capital improvements, and found that the oversight was generally adequate. However, auditors did find the Thruway did not penalize vendors for late rent payments and one vendor underpaid its rent for one month.

The following four audits are of private schools in New York State that receive operating aid directly from the State to provide educational services for disabled students:

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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