The Office of the New York State Comptroller, led by Thomas P. DiNapoli, has released a series of audit findings covering education, health care, public transportation, social services, and mental health programs.
A review of New York City Public Schools (NYCPS) found that almost half of students entering college require remedial courses and nearly half do not graduate. A previous audit from October 2022 indicated NYCPS needed to improve its preparation of students for college-level work. Since then, NYCPS officials have implemented all four recommendations from that report.
Auditors also examined the Department of Health’s (DOH) oversight of managed care organizations (MCOs). The report found that DOH did not always follow internal guidance when reviewing provider networks and sometimes failed to update deficiency statuses or provide clear instructions to MCOs about the review process or out-of-network payments. The lack of oversight could lead to increased Medicaid expenses and missed opportunities for improvement.
The Metropolitan Transportation Authority’s (MTA) compliance with state law requiring a reorganization plan was also assessed. The audit noted that while MTA Capital Construction had been reorganized as Construction & Development Company (C&D), there was insufficient data to determine if these changes resulted in faster or more cost-effective capital projects. Definitions regarding cost savings were unclear and some supporting data was incomplete.
Regarding Medicaid billing practices, auditors identified overpayments totaling nearly $1.8 million after reviewing claims processed through eMedNY where providers used certain adjustment codes incorrectly. This points to weaknesses in how third-party insurance coordination is handled before Medicaid is billed.
An audit into the New York City Department of Homeless Services’ contract with the Institute for Community Living at Tillary Street Women’s Shelter revealed ongoing issues with expenditure reviews and year-end closeouts. For fiscal years ending June 30, 2019, about 9.7% of reported costs did not meet requirements. Of nine prior recommendations made in September 2022, only one has been fully implemented by DHS.
Finally, an evaluation of Kendra’s Law—which mandates court-ordered Assisted Outpatient Treatment for individuals with severe mental illness—showed some progress since a February 2024 audit highlighted delays in investigations and gaps in information-sharing among agencies involved. Of six recommendations from that report, three have been implemented by the Office of Mental Health; two are partially addressed and one remains outstanding.
