A Mineola non-profit submitted more than $200,000 in “questionable charges to the county for hours not worked, unsubstantiated credit card charges by employees, and numerous internal control issues,” according to an audit issued last week by the Nassau County comptroller’s office.
Nassau County Comptroller George Maragos said he was sending the audit of the Family and Children’s Association to the county district attorney and the county attorney to possibly try to recoup the funds.
Maragos said he is also advising all county departments to review the effectiveness of their FCA programs in helping the needy, and recommending the departments deal with “other worthwhile agencies.”
“The numerous apparent FCA operating weaknesses, alleged overbilling to the County and failure to acknowledge any shortcomings are disturbing,” Maragos said in a statement. “The very defensive reaction by FCA to the audit findings may imply a culture of unaccountability to taxpayers.”
Joyce Mullen, director of marketing and communications for the Family and Children’s Association said the agency does not agree with the audit’s finding but intends to institute changes recommended by the country comptroller.
“While we disagree with the majority of [comptroller’s office] findings and have communicated such disagreements to the Office of the Comptroller, we have expressed our willingness to act on recommendations that support our commitment to continuous quality improvement in both our service delivery to clients and our policies and procedures,” Mullen said in a statement.
Mullen said the association has “a system of internal controls and documented policies and procedures” in place that is reviewed and approved by its audit committee. She also said its independent auditors, Holtz Rubenstein Reminick LLP has regularly issued letters indicating “no material weakness” in its annual audits of Family and Children’s Association financial statements.
In conducting its review, the county comptroller’s office said it reviewed “five substantial contracts” out of over 50 with Family and Children’s Association during the 2009 and 2010 audit period. Nassau County made payments to Family and Children’s Association of more than $10 million in 2010 for various services, the county comptroller’s office said.
Family and Children’s Association is a New York State charitable not-for-profit organization established in 1998 and is one of the largest social services agencies contracting with Nassau County. The agency, which is headquartered at 100 East Old Country Road, also places contract staff in various county departments.
The programs of the Family and Children’s Association the comptroller’s office reported reviewing were:
• Persons in Need of Supervision Diversion Program, for families of children up to the age of 18 that display ungovernable behavior, providing services intended to prevent foster care or assisting in the early discharge from foster care
• Substance Abuse/Treatment with the Department of Behavioral Health, a chemical dependency outpatient program that provides outpatient services to a mainly adolescent population and families who are experiencing difficulties in life due to their own or someone else’s abuse
• Youth and Community Development Program, to strengthen families, create healthy alternatives for young people, develop communities, and support programs
• Case Management with the county Department of Senior Citizens, providing case management, housekeeping and ancillary services to the frail and elderly
• Preventive Services with the county Department of Social Services, providing case-planning services aimed at preventing foster care or assisting in the early discharge from foster care.
The preventive services contract amounts were $1,156,317 in both 2009 and 2010, according top the county comptroller’s office, with the county providing 22 percent of the funding, 43 percent from federal sources and 35 percent from state sources.
The county comptroller’s office said “numerous administrative weakness and improper expenditures” were found with all of the programs reviewed. Other deficiencies turned up by the audit included frequent use of credit cards with inadequate oversight for expenditures that would be charged back to the county.
The comptroller’s office reported that some purchases included gift cards, Ipods, food and bowling for clients “that were not always identified and were without sufficient justification.”
Time was charged that was not worked by the employees of Family and Children’s Association, according to the comptroller’s office, which reported that FCA’s own time and leave policy was violated and employee mileage claims were not being properly documented
As a part of the interaction with its independent auditors, Mullen said, “FCA is currently performing a risk assessment review to processes that can be improved and ensuring best practices are implemented based on a cost/benefit analysis.”
Reach reporter Richard Tedesco by e-mail at rtedesco@theislandnow.com or by phone at 516.307.1045 x204. Also follow us on Twitter @theislandnow and Facebook at facebook.com/theislandnow.
