Audit Report On The Samaritan Village Contract With The Department Of Correction To Operate The Rikers Island Discharge Enhancement Program

AUDIT REPORT IN BRIEF

This report determined whether the Samaritan Village (Samaritan) complied with the provisions of its contract with the Department of Correction (DOC) to operate the Rikers Island Enhancement (RIDE) program. The audit also determined the adequacy of DOC’s monitoring of its contract with Samaritan. RIDE is a multi-service program in which inmates are assisted during incarceration and after release. Through RIDE, inmates are referred to aftercare programs that provide family, employment, housing, and substance abuse treatment services. Under the terms of the contract, DOC agreed to pay Samaritan an amount not to exceed $965,017 in Fiscal Year 2006.

Audit Findings and Conclusions

The audit revealed that Samaritan generally complied with the provisions of its RIDE contract with DOC as they relate to providing services to clients. However, our review revealed that Samaritan did not consistently comply with the provisions related to obtaining client signatures and providing milestone-completion dates to support its claims for reimbursement. Of the 116 claims we reviewed, 46 (40%) of them did not contain the client’s signature or the milestone-completion date. In addition, Samaritan billed DOC twice for 31 deliverables relating to 19 clients who were re-incarcerated during Fiscal Year 2006. As a result, Samaritan overbilled DOC, and this resulted in an overpayment of $10,675. Our audit also revealed that DOC’s monitoring of Samaritan’s performance needs to be improved. DOC did not consistently apply its milestone verification standards in relation to obtaining client signatures and milestone-completion dates. In addition, it did not consistently ensure that Samaritan’s monthly statements of deliverables were properly reviewed, that claim disallowances were properly applied to related claims, or that percentage disallowances were applied to an entire audit period as per DOC’s own policy. Our review of Samaritan Village’s Monthly Statement of Deliverables and respective bill attachments, as well as DOC audit reports, revealed four instances involving a total of $4,442 in which DOC did not properly review claims, seek recoupment of incorrect payments, or apply a percentage disallowance correctly.

To address these issues, the audit recommends that Samaritan:

• Ensure that the supporting documentation for its claims contains client signatures confirming arrival at and continued participation in aftercare programs, as well as the dates of milestone completion.

• Track its milestone claims to ensure that in the case of client re-incarceration, it does not bill for milestones already claimed during the prior incarceration.

The audit also recommends, among other things, that DOC:

• Ensure that Samaritan consistently requires its clients to sign confirmation forms verifying arrival at and continued participation in an aftercare program.

• Ensure that Samaritan consistently requires its aftercare programs to document the date of milestone completion.

• Track milestone claims to ensure that in the case of a client’s re-incarceration, it does not pay for milestones relating to the prior incarceration for which Samaritan has already received payment.

• Ensure that Monthly Statements of Deliverables are carefully reviewed to prevent double payments for the same claim.

• Ensure that disallowances for claims pertaining to clients are applied to those clients’ related claims when appropriate.

• Ensure that percentage disallowances are applied to the entire audit period as per its own policy.

Agency Response