Objective

To determine the extent of implementation of the nine recommendations included in our initial audit report, Administration of the Contract With the Postgraduate Center for Mental Health (2015-S-88).

About the Program

Our initial report, issued December 30, 2016, determined if the Office of Mental Health (OMH) effectively administered its Supportive Housing Contract with the Postgraduate Center for Mental Health (PCMH). The audit found sampled clients were program-eligible and were referred to the program via the proper authorities and that client case files contained required documentation. However, our visits to certain client apartments identified what appeared to be ongoing conditions that could negatively affect the health and/or safety of clients. For example, three apartments had significantly damaged ceilings/walls, two did not have smoke/carbon monoxide detectors installed, and one had a severe bedbug problem. We also identified $697,938 in unsupported and/or inappropriate expenses charged to the audited contract and other related OMH contracts. These expenses included charges for a profit-sharing account that primarily benefited three PCMH executives; a deferred compensation plan reserved solely for PCMH’s Chief Executive Officer; parties and alcoholic beverages for staff; and unsupported professional fees and staff travel. We also found deficiencies in efforts by OMH program staff to follow up on recommendations to PCMH resulting from field visits, and excessive delays by OMH to recover $1.4 million in surplus advances from the 2011-12 through 2013-14 fiscal years.

Key Findings

Some progress has been made in addressing the issues identified in our initial report, as four of the prior recommendations have been implemented, one has been partially implemented, three have not been implemented, and one is no longer applicable.  

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.