Purpose

To determine the extent of implementation of the seven recommendations included in our initial audit report, Chemical Dependency Program Payments to Selected Contractors in New York City (Report 2007-S-60).

Background

Our initial audit report, which was issued on May 6, 2010, reviewed the payments to two contractors; Palladia Inc, and the Queens Child Guidance Center by the Office of Alcoholism and Substance Abuse Services (OASAS) for the prevention and treatment of alcohol and substance abuse. We audited $8.4 million in payments made to the two contractors, and found that neither contractor could provide documentation showing that the expenses reimbursed by these payments related to authorized contract activities. We therefore recommended that OASAS recover all $8.4 million. The objective of our follow-up was to assess the extent of implementation, as of January 2013, of the seven recommendations included in our initial report.

Key Finding

• OASAS officials have made progress in addressing the matters identified in our initial report. Of the seven prior audit recommendations, five recommendations were implemented, one was partially implemented, and one was not implemented.

Key Recommendation

• Officials are given 30 days after the issuance of the follow-up review to provide information on any actions that are planned to address the unresolved issues discussed in this review.

Other Related Audit/Report of Interest

Office of Alcoholism and Substance Abuse Services: Contract with Daytop Village, Inc. (2008-R-1)