Objective

To determine the extent of implementation of the ten recommendations included in our initial audit report, Oversight of Security Expenses in Single Adult and Adult Family Homeless Shelters (Report 2016-N-6).

About the Program

The New York City (City) Department of Homeless Services (DHS), an administrative unit of the New York City Department of Social Services, is responsible for shelter system management of homeless shelters in the City. The majority of shelters are operated by private providers through contracts with DHS. A typical provider contract includes provisions for procurement, inventory procedures, and maintenance of records.

DHS is responsible for ensuring that all shelters operating under its regulatory purview are providing security and protecting the physical safety of shelter clients and staff. Toward this end, DHS requires providers to develop security plans and implement appropriate security measures, as stipulated in the provider contracts. DHS is also responsible for monitoring shelters’ security expenses to ensure they are appropriate and in compliance with contract requirements.

Our initial audit report, issued on May 7, 2018, found that DHS lacks strong internal controls – most notably DHS-specific standard operating procedures. Our review of four sampled providers’ security expenditures alone identified nearly $2.2 million in insufficiently documented and/or questionable security expenses, indicating that significant monitoring gaps exist. Furthermore, DHS did not maintain, or hold providers accountable for maintaining, accurate and complete inventory records of City-owned security equipment in use at homeless shelters, increasing the risk of loss, theft, or misuse of valuable and vulnerable assets.

Key Finding

DHS officials have made progress in addressing the issues identified in our initial report. Of the report’s ten recommendations, two were implemented, seven were 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.