Trash in Front of Garbage Chute in the 7 th Floor Hallway of the Carlton House Shelter in Queens

View The Carlton House Audit (pdf)
View Comptroller Thompson's Letter on the Carlton House(pdf)

Comptroller William C. Thompson, Jr. today issued an audit reporting that the Salvation Army failed to operate and maintain safe and sanitary conditions at the Carlton House Shelter in South Ozone Park , Queens .

“My office found that the Salvation Army did not ensure that the Carlton House was maintained properly,” Thompson said. “In every unit we checked, we found horrible conditions: roach infestation, water damaged walls and ceilings, peeling paint, stained and frayed carpets, leaking sinks and bathtub faucets, damaged appliances, and broken cabinets and doors. And residents complained of roaches, mice, and bedbug infestations. People should not have been living in these conditions.”

The Comptroller's audit of the Salvation Army contract with the Department of Homeless Services (DHS) was prompted by concerns raised by U.S. Congressman Gregory W. Meeks of the deplorable conditions at Carlton House.

The Department of Homeless Services provides temporary emergency shelter for eligible homeless families and individuals. DHS entered into a contract with the Salvation Army, a not-for-profit corporation to operate and manage the 335-unit residence on an emergency basis in July 2002.

Under the terms of the contract and its Operational Plan the Salvation Army was expected to maintain sanitary conditions at the facility; conduct routine inspections of the rooms, provide childcare and security services to residents, and manage payroll, personnel, and other administrative functions.

The auditors found that the Salvation Army did not adhere to many of the terms in the DHS contract. The Salvation Army did not:

•  Maintain the rooms in a safe and sanitary condition and conduct routine checks of the rooms at the facility. The Comptroller's staff checked 77 of the 335 rooms and found that each unit had unsafe or unsanitary conditions. DHS was immediately notified by the Comptroller's Office and DHS agreed to take corrective action. The Comptroller was notified several months later that the City would close Carlton House. The facility was officially closed on September 30, 2005.

•  Prevent DHS funds from being commingled with funds from other Salvation Army programs. The Salvation Army improperly commingled funds by using more than $1.9 million in Carlton House funding to pay expenses for non-related Salvation Army programs and to repay loans made to Carlton House.

•  Properly document payments to vendors for the purchase of goods, maintenance and repairs, extermination and food services, from its general account. In 11 cases, vendors were paid a total of $27,802 for invoices that were previously paid. In addition, 153 of 162 payments for purchased items did not contain sufficient evidence in the files that the items were counted and inspected upon receipt.

•  Document timekeeping records for Carlton House employees. Our review of the records found that $77,820 was paid for 5,402 undocumented work hours.

•  Institute inventory controls. The audit shows that the Salvation Army did not maintain an inventory list of equipment or affix tags to the equipment such as computers, printers, and fax machines.

The Comptroller recommended that DHS ensure that contractors:

•  Operating temporary emergency shelters maintain safe and sanitary conditions in the facilities.

•  Operating emergency shelters develop and implement formal procedures for inspecting residential units and should ensure that inspections are carried out in accordance with these procedures.

•  Not commingle program funds with non-related programs.

•  Operating emergency shelters implement a supervisory payment review process to ensure that all necessary documents are on file and that necessary approvals are obtained.

•  Maintain adequate documentation to support all wages paid to employees.

•  Establish and maintain inventory records, inventory procedures, and affix tags to equipment to ensure that physical assets are properly safeguarded.

A copy of the audit can be found on the Comptroller's web site at www.comptroller.nyc.gov