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October 6, 2008



Comptroller DiNapoli Releases Audits

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

Banking Department Quality of Internal Control Certification (Report 2008-S-113)
The Banking Department regulates financial institutions licensed or chartered in New York State. State agencies and public authorities must annually certify their compliance with specific internal control provisions. Auditors examined the adequacy of the Department’s certification for the year ended March 31, 2008 and found that the certification met all requirements.

Department of Health Potential Overpayments of Medicaid Provider Claims for Human Immunodeficiency Virus (HIV) Primary Care Services (Report 2008-S-5)
Medicaid provides an annual evaluation, periodic testing and monitoring services to recipients with HIV. Auditors examined the Medicaid claims submitted by clinics over a three-year period for HIV primary care services. Auditors found $2.4 million in potential overpayments to 174 clinics and bills for significantly more tests for a single patient then what is allowed in a year. Auditors recommended that the Department of Health investigate the potential overpayments, recover all actual overpayments, and develop controls to prevent such overpayments in the future.

Division of Criminal Justice Services Quality of Internal Control Certification (Report 2008-S-104)
The Division of Criminal Justice Services provides support services to state and local criminal justice agencies. State agencies and public authorities must annually certify their compliance with specific internal control provisions. Auditors examined the adequacy of the Division’s certification for the year ended March 31, 2008, and found that certification was not always sufficiently detailed and some of the supporting documents lacked important information.

Division of Military and Naval Affairs Quality of Internal Control Certification (Report 2008-S-112)
The Division of Military and Naval Affairs administers and supervises New York State’s organized militia. State agencies and public authorities must annually certify their compliance with specific internal control provisions. Auditors examined the adequacy of the Division’s certification for the year ended March 31, 2008 and found that certification met all requirements.

New York City Financial Information Services Agency Controls over Information Systems (Report 2007-N-12)
The New York City Financial Information Services Agency (FISA) maintains financial information systems for New York City, such as its centralized accounting and budgeting system, payroll system, pension system and personnel system. Auditors examined security controls for these information systems and found that improvements were needed. So as not to compromise the security of the systems, detailed findings and recommendations were not included in the report, but were presented separately to FISA officials throughout the course of the audit.

Office of Children and Family Services New York City Day Care Complaints (Report 2008-F-5)
Child care providers in New York City are regulated by the New York City Department of Health and Mental Hygiene. The Department’s regulation of the providers is overseen by the New York State Office of Children and Family Services (OCFS). As part of its regulation, the Department is expected to investigate and resolve complaints regarding possible health or safety violations. A prior audit (Report 2005-S-40) found nearly one-third of the complaints in the sample were not properly classified with respect to their severity, half were not investigated within the required timeframes, and that the statewide toll-free telephone number established by OCFS for day care complaints was not staffed during evenings or weekends. Auditors followed up on these matters with OCFS officials and found that they had made some progress in implementing audit recommendations, but additional actions were still needed.

Office of Court Administration Contract with Lawyers for Children (Report 2007-R-2)
The Office of Court Administration (OCA) is the administrative branch of New York State’s Unified Court System, and is contracted with Lawyers For Children to provide legal representation for children in family court proceedings in New York City. For the period April 1, 2004 through December 31, 2006, Lawyers For Children claimed a total of $10.2 million in expenses under the contract. Auditors examined whether these expenses were adequately documented and allowable, and found that they generally were. However, the audit identified $6,929 in claimed expenses that were not adequately documented and recommended that this amount be refunded to OCA unless the necessary supporting documentation could be provided.

State Education Department Tuition Reimbursement Account Financial Statements (Report 2007-S-138)
The Tuition Reimbursement Account is administered by the State Education Department. When post-secondary private schools close or are found to be in violation of the State Education Law, the Account can be used to refund the tuition and student loans of the students who were attending the schools. The Account is financed by an assessment levied on the schools’ tuition revenue and by fines and penalties assessed against schools violating the Education Law. As of March 31, 2008, the Account’s fund balance reportedly totaled $2,117,467. Auditors examined the Account’s balance sheet as of March 31, 2006 and March 31, 2007, as well as the related statements of revenues, expenditures and changes in the Account’s fund balance, and concluded that the financial statements were presented fairly in all material respects.

State Insurance Fund Internal Controls Over Selected Financial Operations (Report 2008-F-12)
The State Insurance Fund provides workers’ compensation and disability benefit insurance coverage to many employers in New York State. In a previous audit (Report 2005-S-57), auditors examined the adequacy of the Fund’s controls over its computer equipment, payroll operations and vehicle management, and identified significant weaknesses in the controls over computer equipment and missing equipment. The audit also identified the need for improvement in certain aspects of the Fund’s payroll operations and vehicle management. Auditors followed up on these matters with Fund officials, and found that they had made significant progress in correcting the problems identified.

State University Construction Fund Quality of Internal Control Certification (Report 2008-S-118)
The State University Construction Fund contracts with architects and engineers to design and oversee construction projects for the State University of New York. State agencies and public authorities must annually certify their compliance with specific provisions of internal control. Auditors examined the adequacy of the Fund’s certification for the year ended March 31, 2008 and found that the certification met all requirements.

State University of New York System Administration Network Security Controls (Report 2008-F-15)
The State University of New York’s System Administration oversees all SUNY operations. System Administration uses a computer network that is connected to computer networks at individual campuses. In a previous audit (Report 2006-S-25), auditors examined selected aspects of the security controls in place over System Administration’s computer network and found that certain improvements could be made in these controls. Auditors followed up on these matters and found that progress had been made by System Administration officials in implementing audit recommendations, but additional actions were still needed. Due to the sensitivity of the information, detailed audit findings and recommendations were not included in either the original audit report or the follow-up report.

The reports are available by clicking on the report name or by calling the Press Office at (518) 474-4015.

State Agency and Public Authority Audits
The Office of the State Comptroller regularly audits state agencies and public authorities. 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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