Comptroller DiNapoli Releases Audits
New York State Comptroller Thomas P. DiNapoli announced today the following audits have been issued:
Office for People With Developmental Disabilities, High Overtime Payments (Follow-Up) (2012-F-5)
An initial audit found Central New York DDSO management had not made enough efforts to monitor the distribution of overtime hours among its employees. CNYDDSO was not following its Memorandum of Understanding (MOU) with the union, which requires overtime to be distributed to part-time employees before distributed to employees for overtime work. Auditors also found that a few CNYDDSO employees were not properly authorized for dual employment. In a follow-up, auditors determined CNYDDSO officials have made significant progress correcting the problems cited previously.
Office for People With Developmental Disabilities Use of Employees and Employees' Relatives as Vendors (Follow-Up) (2012-F-4)
An initial report reviewed payments to vendors or individuals for home maintenance and repair services and for respite care/sitter services. The audit found that some of the vendors hired by the CNYDDSO to provide maintenance and repair services at the group homes were relatives of employees at the DDSO. Auditors looked at 113 of these transactions and found that, in most all instances, there was no indication other vendors were given an opportunity to provide the services and no assurance a reasonable price was paid for the services. Auditors determined office officials have made significant progress correcting problems identified in our initial report. Five of the seven recommendations have been fully implemented. One recommendation is no longer applicable and one other has been partially implemented.
State Education Department Quality of Internal Control Certification (2012-S-45, See 2012-S-42 above for description of requirements)
On July 20, 2012, SED submitted its annual Internal Control Certification and reported a mix of full and partial compliance with the various provisions of the Act. SED's certification was submitted almost three months late on July 20. Although submitted late, SED's certification exhibited the necessary quality. Answers were complete and responsive, and were supported by records and documentation maintained by the agency.
Office for People With Developmental Disabilities, Quality of Internal Control Certification (2012-S-44, See 2012-S-42 above for description of requirements)
For the 2011-12 fiscal year, OPWDD reported a mix of partial and full compliance with the various requirements of the Act. The certification was submitted two weeks late on May 15, 2012. Although submitted late, OPWDD's certification exhibited the necessary quality. Answers were complete and responsive, and were supported by records and documentation maintained by the agency.
Department of State, Quality of Internal Control Certification (2012-S-50, See 2012-S-42 above for description of requirements)
On April 30, 2012, DOS submitted its annual Internal Control Certification and reported full compliance with all provisions of the Act. DOS' Internal Control Certification was submitted timely and exhibited the necessary quality. Auditors noted that although DOS certified full compliance with all provisions of the Act, it last provided internal control training to all staff in 2009-10.
TAP/HESC, The New School (2010-T-5)
Auditors determined that The New School was overpaid $245,653 because school officials incorrectly certified students as eligible for TAP awards. Incorrect certifications include six students who received awards but did not meet the requirements for maintaining good academic standing; six students who had not been fully credited with their TAP awards; two students who did not meet residency requirements; three students who did not meet the requirements for matriculation; two students whose tuition charges had been over-certified; and one student who did not meet the requirements for full-time attendance.
The Higher Education Services Corporation should recover $245,653 plus applicable interest from The New School for its incorrect TAP certifications and ensure that school officials comply with the requirements related to certifying accurate tuition amounts, crediting TAP awards and verifying students' residency.
Department of Health Overpayments for Medicare Part C Coinsurance Charges (2011-S-33)
Healthfirst misreported the cost-sharing liabilities of Medicaid recipients to some of its healthcare providers. As a result, 14 providers billed excessive amounts of coinsurance on 497 Medicaid claims for clinic services. Because of the excessive claims, Medicaid made overpayments totaling $699,258 to the providers. At the time the audit fieldwork was completed, providers submitted adjustments for 126 (of the 497) errant claims, and Medicaid had recovered $195,835. Auditors recommend DOH review the remaining 371 errant claims and the related $503,423 in Medicaid overpayments identified in this report and recover funds where appropriate.
Department of Health, Unnecessary Medicaid Payments for Children at Voluntary Agencies (2010-S-47)
In many instances, payments to medical providers far exceeded the reimbursements that the providers would be entitled to under the fee-for-service method. Medicaid could save millions of dollars annually if the daily rate method limited voluntary agency provider reimbursements to the amounts that providers would be entitled to on a fee-for- service basis. On a fee-for-service basis, Medicaid paid about 1.1 million claims (totaling $83.2 million) directly to health care providers for medical services that otherwise were covered by Medicaid's daily rate payments to the voluntary agencies. Auditors recommended DOH formally assess the cost-effectiveness of the daily rate reimbursement method and determine if it should be modified or if a different reimbursement mechanism should be applied for health services for children at voluntary agencies.