Purpose

To determine whether payments made by the Office for People With Developmental Disabilities (OPWDD) to the Association for the Advancement of Blind and Retarded (AABR) for the Options for People Through Services (OPTS) Program (Program) were supported and Program-appropriate. The audit covered the period July 1, 2006 through June 30, 2011.

Background

OPWDD provides services to developmentally disabled individuals (Individuals) through various programs, including the OPTS Program. Program services include prevocational job-based training to help prepare Individuals for future employment and eventual integration back into their communities. Program services are usually provided through third-party contractors such as AABR, which had a five-year $46.9 million contract with OPWDD covering the period July 1, 2006 through June 30, 2011. The contract was subsequently extended through June 30, 2016 for an additional $65.8 million. Payments to AABR are based on rates set by OPWDD.

Key Findings

• Based on a sample of paid claims, we concluded that payments by OPWDD to AABR were supported and program-appropriate.
• However, we estimate OPWDD overpaid AABR $1.139 million during a sampled six-month period as a result of using budgeted, rather than actual, expenses when developing its contractor reimbursement rates.
• OPWDD needs to enhance its monitoring of Program services claimed by AABR.

Key Recommendations

• Recalculate reimbursement rates using actual expenses for future OPTS contractor billings.
• Periodically verify, on a sample basis, the Program services reportedly provided by AABR as well as other Program service providers.

Other Related Audit/Report of Interest

Office for People With Developmental Disabilities: Administration of Contingency Contracts (2010-S-28)