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September 26, 2008



Comptroller DiNapoli Releases Audits


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

Department of Health Implementation of eMedNY (Report 2008-F-9)
Medicaid claims are processed and paid by an automated system that is operated by a contractor. In 2000, Computer Sciences Corporation (CSC) was awarded a contract in which it was supposed to develop a new and enhanced automated claims processing system (eMedNY). A prior audit
(Report 2005-R-3) examined CSC’s execution and the Department of Health’s oversight of this contract, identified a number of delays and recommended improvements. Auditors followed up on these matters and found that most of the recommendations had been implemented.

Erie County Medical Center Corporation Accuracy of Employee Retirement Reporting (Report 2008-S-59)
Auditors examined the Corporation’s New York State Employees’ Retirement System enrollment practices and found that they did not always comply with state requirements. Auditors identified three full-time employees who had not been enrolled in the Retirement System. However, auditors found the majority of the information reported by the Corporation was accurate. Auditors recommended that the Corporation make improvements in its enrollment practices.

Housing Finance Agency, State of New York Mortgage Agency Accuracy of Employee Retirement Reporting (Report 2008-S-56)
The audit examined the Housing Finance Agency’s (HFA) and the State of New York Mortgage Agency’s (SONYMA) New York State Employees’ Retirement System enrollment practices. Auditors found that District complied, for the most part, with state requirements and the reported information was accurate.

Hudson River-Black River Regulating District Accuracy of Employee Retirement Reporting (Report 2008-S-61)
The audit examined the District’s New York State Employees’ Retirement System enrollment practices and found that they complied with state requirements and the information was accurate.

New York State Bridge Authority Accuracy of Employee Retirement Reporting (Report 2008-S-62)
Auditors examined the Authority’s New York State Employees’ Retirement System enrollment practices, and found that they complied with state requirements and the information was accurate. However, a systematic reporting error that was caused by faulty computer programming was identified. Auditors recommended that the programming be corrected and adjustments made to correct the reporting errors.

New York State Racing and Wagering Board Quality of Internal Control Certification (Report 2008-S-119)
State agencies and public authorities must annually certify their compliance with important internal control Provisions. Auditors examined the adequacy of the Board’s certification for the year ended March 21, 2008, and found that the certification met all state requirements.

New York State Racing and Wagering Board Time and Attendance Operations for Selected Field Staff (Report 2007-S-85)
Auditors examined the time and attendance practices of certain employees with responsibilities in remote locations and identified weaknesses in the controls over the practices of one group of employees (those who were assigned to race tracks on a per diem basis) and recommended that these control weaknesses be corrected.

Roswell Park Cancer Institute Accuracy of Employee Retirement Reporting (Report 2008-S-58)
Auditors examined the Institute’s New York State Employees’ Retirement System enrollment practices, and found that District complied, for the most part, with state requirements and the reported information was accurate.

State Education Department, A Starting Place: Reporting Costs and Enrollments for Tuition Rate-Setting Purposes (Report 2008-S-68)
Students with special needs may be taught in separate schools whose costs are reimbursed by state and local taxpayers on the basis of tuition reimbursement rates set by the State Education Department. Auditors examined the reimbursable costs reported by Pearl River-based A Starting Place for three pre-school programs for the year ended June 30, 2006, and disallowed $21,555 of the reimbursable costs claimed because the costs did not comply with the Department’s reimbursement guidelines. The audit also found that the school’s board of directors was not sufficiently independent, as all five board members were either affiliated with the school, did business with the school, or were related to an employee of the school.

State Education Department Security Over Regents Examinations (Report 2008-F-13)
High schools are required by the State Education Department to follow certain security-related procedures in their handling of Regents Examination materials. A prior audit (Report 2006-S-104) found that 41 of the 235 schools during the January 2007 Regents examination period were not fully complying with the requirements for the storage and unsealing of the examination materials, increasing the risk of security breaches. Auditors followed up with Department officials and found the recommendations had been fully implemented.

State Liquor Authority Division of Alcoholic Beverage Control: Oversight of Wholesalers’ Compliance with the Alcoholic Beverage Control Law (Report 2008-F-16)
In New York State, the sale and distribution of alcoholic beverages is regulated by the State Liquor Authority, which is supported by the Division of Alcoholic Beverage Control. A prior audit (Report 2005-S-33) examined the actions taken by the Division in overseeing wholesalers, and found the Division did not make its regulatory bulletins readily available for reference, relied on complaints rather than active monitoring to identify violations, and generally did not follow up to ensure that previously identified violations had been corrected. Auditors recommended various improvements, and found Division officials had made some progress, but additional actions were still needed.

State Office for the Aging Quality of Internal Control Certification (Report 2008-S-114)
The audit examined the adequacy of the Office’s certification of compliance for the year ended March 31, 2008, and found that the certification met all state requirements and the information in the certification was supported by documentation.

State Office of Homeland Security Homeland Security Grant (Report 2007-F-52)
A prior audit (Report 2005-R-2) examined the State Office of Homeland Security’s oversight of about $27 million in federal homeland security grant funds that were provided to New York City, and identified certain areas in which improvements could be made in the controls over the funds. Auditors followed up on these matters and found that audit recommendations had been implemented.

State University of New York Oversight of Campus-Related Foundations (Report 2006-S-96)
The campuses of the State University of New York (SUNY) contract with campus-related, not-for-profit foundations to accomplish fundraising which supports the educational, research and public service missions of the campuses. Auditors examined SUNY System Administration oversight for the 30 campuses with foundations and found it needed to be improved, identifying nine foundations that had been operating without an active contract for period ranging from eight months to five years. Auditors also found that investment and expenditure policies of several foundations did not fully comply with SUNY requirements, and recommended SUNY System Administration strengthen its oversight of the foundations.

Worker’s Compensation Board Ensuring Employer Coverage (Report 2008-F-17)
The Worker’s Compensation Board is responsible for ensuring that employers comply with the Worker’s Compensation Law. A prior audit (Report 2006-S-47) examined the enforcement actions taken by the Board and found they were appropriate, and that the Board had recently enhanced its automated tracking system, resulting in better identification of noncompliant employers. But the audit further noted that the Board’s efforts could be even more effective if certain other improvements were made. Auditors followed up on these matters with Board officials and found that all audit recommendations had been implemented.

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