New York State Comptroller Thomas P. DiNapoli announced today the following audits and examinations have been issued.
City University of New York (CUNY): Controls Over CUNY Fully Integrated Resources and Services Tool (Follow-Up) (2018-F-4)
An initial audit released in September 2016 found that CUNY’s processes and controls did not adequately ensure that users had access only to functions that were necessary to meet their needs. In a follow-up, auditors found CUNY officials have made progress in addressing the issues identified in the initial report. Of the nine prior audit recommendations, one was implemented, six were partially implemented, and two were not implemented.
Department of Labor (DOL): Examination of Unemployment Insurance Willful Overpayments (2016-BSE1-02)
DOL did not consistently assess penalties in accordance with law and/or DOL procedures resulting in the failure to assess up to $311,775 in penalties—more than 10 percent of the penalty amount examined. This includes up to 1,679 penalties valued at $307,753 that were not assessed at all and up to 71 penalties valued at $4,022 that were under-assessed by DOL.
State Education Department: Programs for Little Learners (PFLL): Compliance With the Reimbursable Cost Manual (2017-S-87)
For the three fiscal years ended June 30, 2015, auditors identified $66,597 in ineligible costs that PFLL reported for state reimbursement, including $58,481 in personal service costs and $8,116 in other than personal service costs.
Department of Health (DOH) and the Office of Temporary and Disability Assistance (OTDA): Oversight of Hotels and Motels Used for Homeless Mixed-Use Temporary Residency (Follow-Up) (2018-F-12)
An initial audit report released in June 2017 concluded that, of the 80 hotels and motels auditors visited, 24 (30 percent) were in generally unsatisfactory condition, exhibiting problems such as mold; water damage; structural damage; and fire safety issues, such as exposed wiring and missing smoke detectors. Further, OTDA had not provided local Social Services Districts (SSDs) with sufficient guidance about corrective action plans to address unsatisfactory conditions. In a follow-up, auditors found that OTDA and DOH have implemented the joint recommendation contained in the original audit report, while OTDA has implemented two of its three recommendations.
DOH entered into a $79 million contract with IPRO to provide services related to Medicaid activities. This contract and its amendments were not subject to approval by the Comptroller’s Office. IPRO entered into subcontractor agreements with five firms to help perform the services. Auditors found DOH approved payments to IPRO for subcontractor expenses that were not allowable under the contract. As a result of the audit, DOH prevented or recovered more than $133,000 in unallowable expenses. DOH has since strengthened their review of similar contract payments.
Auditors reviewed selected Medicare Advantage plan contracts offered by Fidelis and WellCare and, based on judgmental sampling, determined certain providers reported inflated Medicare Part C cost-sharing liabilities on 7,072 Medicaid claims resulting in overpayments of $770,935. Auditors determined three of the providers were overpaid 58, 74, and 79 percent of the total Medicaid payments they received for claims in the review. Auditors analyzed the remaining Part C cost-sharing claims billed by these providers during the audit period and found – if the rate of overpayment is consistent with the initial review – Medicaid potentially overpaid an additional $562,356 to these providers.
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