Audit Report on the Contract of Project Hospitality, Inc., with the Department of Homeless Services to Operate Hospitality House on Staten Island

AUDIT REPORT IN BRIEF

This audit of the Department of Homeless Services (DHS) reviewed its contract with Project Hospitality, Inc. (Project Hospitality) to provide transitional housing units and related services to homeless families at Hospitality House, a City-owned facility at 100 Central Avenue on Staten Island. DHS is responsible for providing emergency shelter and social services to homeless families in New York City. During Fiscal Year 2003, Project Hospitality, a non-profit organization, received $2,013,352 in payments from DHS in relation to this contract.

Project Hospitality complies with key provisions of its contract with DHS to provide food, shelter, counseling, childcare, and recreation services to its clients in a safe and secure environment at Hospitality House. The main focus of Project Hospitality is to place its clients in permanent housing. To achieve this goal, it assists its clients with the submission of housing applications and informs clients about available apartments. When an acceptable apartment is found, Project Hospitality expedites the lease registration with DHS. Project Hospitality also complies with its contract with respect to the terms of payment procedures at Hospitality House. The audit found one area of contract noncompliance concerning the need for the consistent presence of a certified first-aid staff member. In addition, the DHS contract with Project Hospitality does not accurately reflect current New York State regulations and judicial decrees with regard to certain performance requirements.

To address these issues, the audit makes the following recommendations:

• DHS should ensure that Project Hospitality has a staff member certified to administer basic first aid on duty at Hospitality House at all times.
• DHS should review its contracts with Project Hospitality and similar homeless shelter service providers to ensure that the contracts reflect current performance requirements.

We submitted a draft report to DHS on April 1, 2004 with a request for comments. We received a written response from DHS on April 16, 2004. In its response, DHS officials agreed with the audit’s findings and recommendations. DHS stated that "Project Hospitality has already ensured that each shift has a staff member who is certified to administer basic first aid." DHS also stated that it "agrees with and will implement the recommendation which calls for a review of provider contracts to ensure that the contracts reflect current performance requirements."