State Comptroller DiNapoli Releases Audits

Office of General Services - Capital Asset Management (Follow-Up) (2025-F-2)

New York State has a significant investment in capital assets, which the Office of General Services (OGS) considers to be any property with a significant value that is used over a long period of time. OGS established the Statewide Financial System Asset Management Module (SFS AM) to house and maintain capital asset information in a single master file, and State agency managers use it to budget, account for, and control the acquisition and disposition of the State's capital assets. A prior audit report, issued in February 2024, found that OGS was not adequately overseeing capital assets reported by State agencies to ensure that these agencies were properly and promptly reporting capital assets. OGS has made progress in addressing the issues identified in the initial audit report. Of the report's seven recommendations, five have been implemented and two have been partially implemented.

New York State Health Insurance Program - CVS Caremark: Effectiveness of CVS Caremark Audits of the Empire Plan Prescription Drug Program (2024-S-4)

CaremarkPCS Health, L.L.C. (CVS Caremark) administers the prescription drug program for the Empire Plan, the primary health benefits plan for the New York State Health Insurance Program, administered by the Department of Civil Service (Civil Service). In accordance with Civil Service's Pharmacy Benefit Services Contract with CVS Caremark, CVS Caremark must implement a comprehensive audit program that includes conducting on-site audits of pharmacies, providing audit reports to Civil Service and notifying Civil Service of any allegations or indications of potential fraud and abuse. The audit found that CVS Caremark audits sometimes reviewed only a minimal number of Empire Plan claims; CVS Caremark did not perform on-site audits of all the top 50 paid pharmacies for calendar years 2019-2023, as required by the Contract; and CVS Caremark has a different understanding of its responsibilities regarding the identification and referral of fraud and abuse than what is outlined in the Contract, resulting in CVS Caremark not referring any potential pharmacy fraud or abuse cases to Civil Service during the audit period.

New York Power Authority - Selected Management and Operations Practices (Follow-Up) (2024-F-15)

Charge NY 2.0, a successor to the Charge NY program, aimed to install 10,000 public electric vehicle charging stations in New York State by 2021. Charge NY is a collaboration among the New York State Energy Research and Development Authority, the New York Power Authority (NYPA) and the Department of Environmental Conservation. A prior audit, issued in February 2022, found that NYPA did not place the Charge NY and Charge NY 2.0 charging stations in locations that supported the programs' intentions and did not review and analyze usage data for charger placement or use outreach efforts to encourage electric vehicle charger installation by its customers. The installation of electric vehicle high-speed chargers was as much as 2 years behind schedule. NYPA made progress in addressing the problems identified in the initial audit report. Of the initial report's nine audit recommendations, two were implemented, six were partially implemented and one was not implemented.

Hudson River Valley Greenway - Access Controls and Vulnerability Management (2025-S-17)

The Hudson River Valley Greenway (HRVG) is responsible for managing grants with a particular emphasis on those related to planning, along with initiatives for trails, water trails and heritage development. HRVG uses an online grant platform that streamlines the entire grant process and must adhere to New York State ITS standards, policies and guidelines, including the IT standards on vulnerability management, account management and authentication. Auditors identified areas where HRVG could improve certain security controls to minimize the various risks associated with unauthorized access to its systems and data. Due to the confidential nature of the audit findings, details of these findings were communicated with three recommendations in a separate, confidential report to the HRVG officials. HRVG officials generally agreed with the findings and indicated actions to implement the recommendations.

State Education Department (Preschool Special Education Audit Initiative): The Arc Jefferson-St. Lawrence - Compliance With the Reimbursable Cost Manual (2024-S-14)

The Arc Jefferson-St. Lawrence (Arc-JSLC), a not-for-profit special education provider located in Watertown, is authorized by the State Education Department (SED) to provide Preschool Special Class (over 2.5 hours per day) and Preschool Integrated Special Class (2.5 hours per day) education services to children with disabilities between the ages of 3 and 5 years. For the three fiscal years ended June 30, 2021, Arc-JSLC reported approximately $5.4 million in reimbursable costs for the SED preschool cost-based programs. Auditors identified $91,887 in reported costs that did not comply with requirements.