FOR RELEASE:

DiNapoli's Office Prevented $3.4 Million in Overpayments by New York State Workers Compensation Board

State Comptroller Thomas P. DiNapoli’s auditors prevented more than $3.4 million in workers’ compensation overpayments during calendar year 2010 according to a report released today.  DiNapoli’s auditors serve onsite at the Workers Compensation Board and audit payments made out of the five funds used to pay certain workers’ wage compensation and medical claims. During the last four years, the Comptroller’s staff saved the state more than $65 million by preventing board overpayments.

“These payments impact the workers’ compensation rates paid by every business in the state,” DiNapoli said.  “The board has made progress over the years to reduce payment errors. But in this economic climate, businesses can’t afford any government mistakes.”

DiNapoli’s office also identified nearly $500,000 in underpayments.  The report’s findings are part of DiNapoli’s continuous examination of payment requests processed by the board.  During 2010, the Comptroller’s Office approved more than 655,000 payment requests totaling approximately $820 million from the funds.

Auditors stopped 619 payments as follows:

Reason                                                            Number of Payments            Amount
Did Not Conform to Fee Schedule                                   253                         $1,074,155
Computation Error                                                         128                             936,132
Data Entry Error                                                              14                             730,411
Duplicate                                                                        21                             294,413
Missing Supporting Documentation                                   61                             235,408
Other                                                                              28                            159,579
Total Overpayments                                                        505                       $3,430,098

Total Underpayments                                                     114                           $481,110

Board officials agreed with the auditors’ findings and will work to improve the payment process.

The complete report can be found here: http://osc.state.ny.us/audits/allaudits/10-3b-bse-001.htm