State Comptroller DiNapoli releases audits

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

The Military and Naval Affairs Division: Internal Controls Over Certain Financial Transactions (Follow-up) (2022-E-4)

The Division of Military and Naval Affairs (DMNA) manages the New York State military forces, which are made up of the New York Army National Guard, New York Air National Guard, Naval Militia of New York and the New York Guard. An audit released in 2020 found numerous weaknesses in DMNA’s internal controls to ensure state assets were properly managed and safeguarded. During a follow-up audit, the auditors found that DMNA had made significant progress in resolving the issues identified during the initial audit, by implementing the nine recommendations that had been made.

State Department of Education: Oversight of Student Transportation Services (Follow-up) (2022-F-5)

About 2.3 million children are transported to school each day statewide, with one-third using school district-owned buses, one-third contracted buses, and the remaining third using public transportation. New York State Education Law requires the State Department of Education to take steps to ensure that school bus drivers, instructors, and attendants are qualified and properly trained . A 2020 audit found that the Department could improve its efforts to monitor school districts’ compliance with its requirements and, therefore, lacked assurance that drivers, monitors and attendants across the state were qualified and had completed the required training. The follow-up audit revealed that departmental officials had made limited progress in resolving the issues identified in the initial audit report.

New York City Department of Transportation: Street Building Permits 2020-N-6

The New York City Department of Transportation issues 150 different types of sidewalk and roadway construction permits that cover activities such as clearing streets, building sidewalks, and installing awnings over sidewalks. DOT Highway Inspections and Quality Assurance (HIQA) is the agency’s enforcement unit and conducts construction site inspections to ensure licensees are complying with laws, regulations, and permit specifications and stipulations. Auditors determined that the DOT did not always ensure that permittees complied with road permit requirements.

Department of Taxation and Finance – Collection of Professional Tax on Petroleum Products and Excise Tax on Motor Fuels (follow-up) 2021-F-30

An audit published in 2020 looked at the systems and practices the Department of Taxation and Finance has in place to enable it to appropriately collect Petroleum Business Tax and Fuel Excise Tax, such as they are required to do so by law. The audit revealed weaknesses in the Department’s efforts to collect taxes appropriately and suggested recommendations on how the Department could improve oversight of distributors and tax collection processes. During a follow-up, the auditors found that the Ministry had made significant progress in resolving the issues identified in the initial report, by implementing the two recommendations that had been made.

United Cerebral Palsy Association of Nassau County, Inc. – Reimbursable Costs Manual Compliance

United Cerebral Palsy Association of Nassau County, Inc. (CPN) is a State Department of Education (SED) approved nonprofit special education provider located in Roosevelt. Among other programs, the CPN offers pre-school education services to young children with disabilities. The CPN is reimbursed for these services according to the rates set by the SED. The auditors reviewed the fiscal year ended June 30, 2018 and found several issues with EIC’s reporting, including nearly $160,000 of ineligible costs reported by EIC in its consolidated financial reports.

All My Children Day Care — Compliance with Reimbursable Expenses Manual

All My Children Day Care (AMC) is a New York-based nonprofit organization licensed by the SED to provide Traveling Special Education Teacher (SEIT) services to young children with disabilities. AMC also managed other programs, including the New York City Administration’s Early Learning Program for Children’s Services. Auditors found that in its annual consolidated financial reports, AMC failed to provide certain key documents it should have kept to substantiate expenses claimed in its annual CFRs, including more than $3 million in unsubstantiated costs for the 2014-2015 financial year.

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