Purpose

To determine the extent of implementation of the seven recommendations included in our initial audit report, New York State Psychiatric Institute - Controls Over State Resources (Report 2008-S-145).

Background

The New York State Psychiatric Institute (Institute), established in 1895, is one of two clinical research facilities administered by the Office of Mental Health (OMH). The Institute conducts clinical trials and research studies relating to the treatment of mental illness. The Institute is funded by a combination of State appropriations and research grants. Reported expenditures for the fiscal year ended March 31, 2013 totaled $76.3 million, of which $44 million related to personal services. During the 12-month period ended July 31, 2013, the Institute reported that it served 502 inpatients and 1,154 outpatients, and employed a maximum staff of 595.

Our initial audit report, issued on January 28, 2011, found Institute management had not always provided adequate control over State resources. We found insufficient controls to ensure Institute employees performed State work commensurate with their State pay, and the Institute was not taking steps to ensure it was receiving fair compensation for use of its facilities by Columbia personnel. In addition, the Institute was not receiving the ownership and royalty rights for certain patented technologies developed on its premises and/or by its employees. We made seven recommendations to OMH designed to strengthen management control over these assets.

Key Finding

Institute officials have made some progress in addressing the issues identified in our initial report. However, additional improvements are still needed. Of the seven prior recommendations, one has been implemented and six have been partially 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.