New York State Comptroller Releases Audits

New York State Comptroller Thomas P. DiNapoli has released the following audits:

Workers’ Compensation Board, Network Security Controls

Auditors examined selected aspects of the security controls in place over a computer network the board relies on. They identified numerous critical weaknesses in these controls.

Empire State Development Corporation, Contracts for Personal and Miscellaneous Services

During a three-year audit period, the Empire State Development Corporation (ESDC) had 75 contracts for personal and miscellaneous services that were fully or partially state-funded. State funding for the 75 contracts totaled $359 million. Auditors examined whether ESDC was adequately justifying the need to initially contract out for such services and periodically reassessing whether such contracts could be deferred, eliminated or reduced. Auditors found that ESDC was not adequately documenting the need to initially contract out, and was not periodically reassessing whether such contracts could be deferred, eliminated or reduced.

Insurance Department, Assessment of Costs To Administer Insurance Department Operations

Auditors examined financial records for three years ending March 31, 2009 and found that they presented fairly, in all material respects, the costs of administering department operations for that period. Auditors also reviewed selected transactions relating to the assessments made against insurance carriers during this period and identified no material instances of noncompliance on the part of the department.

New York City Department of Parks and Recreation, Contracts for Personal and Miscellaneous Services

In 17 months, the New York City Department of Parks and Recreation had 471 contracts for personal and miscellaneous services with a total value of $235.7 million. Auditors examined whether the department was adequately justifying the need to initially contract out for such services and periodically reassessing whether such contracts could be deferred, eliminated or reduced. They found that it was not.

Office for Technology, Minority and Women’s Business Enterprise Reporting

State agencies and public authorities are required to promote the participation of minority-owned business enterprises (MBEs) and women-owned business enterprises (WBEs) in state contracts and procurement opportunities. Specifically, agencies must establish annual goals for such participation (expressed as a percentage of the agency’s total contract spending for the year), make a “good faith” effort to achieve these goals, and report quarterly on their level of participation. Auditors examined the performance in these areas and found that it had not always established annual goals, and when it had, the goals were insupportably low. They also found that the office had not fully met the reporting requirements for such participation.

Office of Children and Family Services, Minority and Women’s Business Enterprise Reporting

State agencies and public authorities are required to promote the participation of minority-owned business enterprises (MBEs) and women-owned business enterprises (WBEs) in state contracts and procurement opportunities. Specifically, agencies must establish annual goals for such participation (expressed as a percentage of the agency’s total contract spending for the year), make a “good faith” effort to achieve these goals, and report quarterly on their level of participation. Auditors examined the performance in these areas and found that, while it was making a good faith effort to achieve its goals for M/WBE participation in its contracts, it had not established appropriate goals for such participation and had not met the reporting requirements.

State University of New York, Space Leasing Practices at Selected Campuses (Follow-Up Report)

Auditors examined space leasing practices at the four campuses that accounted for most of SUNY’s leases for space: the University at Buffalo, the University at Stony Brook, Upstate Medical University in Syracuse, and Downstate Medical Center in Brooklyn. Auditors found that there was a need to develop or enhance formal leasing policies at three of the campuses, and a need to document the reasons for space leases at all four campuses. Also, at two of the campuses, auditors identified leased space that was unoccupied for several months at a cost of nearly $800,000. Auditors recommended that certain improvements be made and when followed up on, found that some progress had been made.

Capital District Transportation Authority, Management of Overtime

Auditors examined CDTA’s management and monitoring of overtime costs, and found that it was effective, as overtime costs in 2009 decreased by 10 percent from 2008. Auditors also found that all the overtime hours tested were actually worked. However, in some instances, overtime was not properly authorized, and as a result, there was less assurance this overtime was necessary.