New York State Comptroller Thomas P. DiNapoli announced today the following audits have been issued.
Division of Criminal Justice Services: Monitoring and Administration of Public Protection Grant Programs (Follow-Up) (2021-F-21)
An audit released in April 2020 found that the Division had adequately administered and monitored the Gun Involved Violence Elimination (GIVE) and SNUG (“guns” spelled backward) grant program contracts reviewed to ensure that the related grant expenses were supported and allowable under the contracts. Auditors identified one exception related to documentation of the authorization or receipt of confidential funds. Since the initial audit, the division reduced and ultimately eliminated confidential funds from its GIVE contract awards. As such, the recommendation from the initial audit is not applicable.
New York City Department of Information Technology and Telecommunications (DoITT): Controls Over and Revenues From .nyc Generic Top-Level Domains (2020-N-3)
A top-level domain (TLD) is the last part of an Internet address, such as .com, .net, or .org. In March 2012, DoITT entered into a franchise agreement with a vendor to apply for the “.nyc” generic TLD (gTLD) and to operate, manage, maintain, and market the .nyc gTLD program. Auditors found DoITT collected only one of the four agreed-upon revenue sources in the city’s contract with the vendor during the audit scope and amended the contract several times with no supporting documentation explaining why. Auditors also found DoITT’s Franchise Administration Team, tasked with managing the contract and collecting the revenue from the vendor, did not monitor or require the registry operator’s compliance with the contract.
New York State Health Insurance Program (NYSHIP): CVS Health – Accuracy of Drug Rebate Revenue Remitted to the Department of Civil Service (Follow-Up) (2021-F-18)
An audit issued in August 2020 found CVS Health did not collect and remit all rebate revenue that it invoiced to drug manufacturers for rebate-eligible prescription drug claims paid on behalf of the Empire Plan, the primary health benefits plan for NYSHIP; therefore, Civil Service did not receive $453,029 in rebate revenue for the period of Jan. 1, 2014 through Dec. 31, 2018. In a follow-up, auditors determined CVS Health has made progress in addressing the problems identified in the initial audit.
State Education Department (SED): E&D Children Center, Inc. – Compliance With the Reimbursable Cost Manual (2020-S-44)
E&D is a New York City-based organization approved by SED to provide preschool Special Education Itinerant Teacher services to children with disabilities who are between the ages of 3 and 5 years. The New York City Department of Education refers students to E&D and pays for its services using rates established by SED. For the three fiscal years ended June 30, 2015, auditors identified $711,676 in reported costs that did not comply with requirements for reimbursement.
The report summarizes select audits that highlight SGA’s efforts to promote fiscal responsibility and brings renewed attention to ideas that could result in cost savings or revenue enhancements for the State and New York City. The audits, all released within the past five fiscal years, demonstrate significant financial impact. The issues and risks they identified should inform agencies with similar programs on improving efficiency in their own operations and strengthening internal controls to prevent excess costs.
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