LIU TO DEPT. OF HOMELESS SERVICES: DUMP AGUILA AND GET YOUR ACT TOGETHER
New Audit Highlights Continued Failures of Agency and of Shelter Operator
Comptroller
John C. Liu called on the Department of Homeless Services (DHS) to
discontinue its use of shelter provider Aguila
Inc. in light of repeated failures to account for millions of dollars
spent and the continued placement of people in shelters that are unsafe
or unclean. He also called on City Hall to drop its lawsuit against the
Comptroller’s office with regards to proposed
contracts with Aguila.
“Despite
their claims to the contrary, Aguila’s appalling record has not
improved and DHS continues to turn a blind eye. At this point, DHS
should just dump Aguila as a shelter operator, and City Hall should
direct its resources towards fixing DHS rather than litigating against
my office,” Comptroller Liu said. “Continued dysfunction is a grave
disservice to the homeless in need as well as communities
whose concerns and input have been bypassed.”
A
new audit underscores a fraught history with DHS and Aguila. In a
November 2011 audit, Liu called on DHS to recoup $1.4 million from
Aguila
and examine another $9 million in bills to see if taxpayers were
entitled to recover more.
Today’s
audit found that DHS has recouped only $558,412, and didn’t even
investigate more than half of the total $10.4 million identified by
the earlier audit as improper or insufficiently supported payments.
Additionally, the audit found the following deficiencies with DHS operations:
·
The agency continued to do business without written agreements, in violation of the City Charter;
·
DHS did not adequately explain how rates the City paid for different shelters were set;
·
DHS did not appropriately follow up after more than 80 percent of units subject to spot inspections failed.
The audit also found that, as of June 2013, Aguila facilities owed the City $605,439 in unpaid water and sewer charges.
In
light of the multitude of problems, rather than reining in Aguila, DHS
rewarded it instead. DHS payments for Aguila-operated shelters surged
from $46.3 million in Fiscal Year 2011 to $57.1 million in Fiscal Year
2013.
The new audit made 18 new recommendations. They include:
·
Periodically
review Aguila per diem rates, allocation plans, and budget line items
to ensure accuracy, reasonableness, and appropriateness, and ensure
items are adequately
supported.
·
Further investigate and recoup the balance of funds as identified in the previous audit.
·
Enter
into written contracts with Aguila for directly-operated facilities
that, at minimum, specify or restrict how funds may be expended.
·
Immediately eliminate the practice of placing clients in facilities with hazardous and unsanitary conditions.
·
Conduct surprise inspections and vary the inspectors.
·
Ensure that all Aguila facilities pay their City fines and water and sewer charges.
Background:
November 2011, Liu audit calls on DHS to recoup money from Aguila:
https://comptroller.nyc.gov/
May 2013, Liu proposes vouchers to help homeless families:
http://comptroller.nyc.gov/wp-
May 2013, Liu issues report on how Mayor Bloomberg’s shelter policies are failing communities and the homeless:
http://comptroller.nyc.gov/wp-
June
2013, the State Supreme Court, Bronx County rules in favor of the
Comptroller’s office in a suit challenging the Mayor’s practice of
establishing shelters and paying
for those services without going through required public procurement
processes. Liu statement:
http://comptroller.nyc.gov/
July 2013, Liu rejects Aguila shelter contracts in the South Bronx and West 95th Street in Manhattan:
http://comptroller.nyc.gov/
LIU ISSUES CITY’S COMPREHENSIVE ANNUAL
FINANCIAL REPORT FOR FY 2013
FINANCIAL REPORT FOR FY 2013
City
Comptroller John C. Liu today released the Comprehensive Annual
Financial Report (CAFR) for Fiscal Year 2013. The report, which provides
a detailed look at the City’s finances,
shows that for the 33rd consecutive year New York City completed its
fiscal year with a General Fund surplus, as determined by the Generally
Accepted Accounting Principles (GAAP).
“Economic
growth improved in Fiscal Year 2013 compared with the previous year
despite the strains of Superstorm Sandy,” Comptroller Liu said.
“Unemployment edged downward and the City’s workforce saw healthy wage
growth for the first time since the financial crisis. But the City must
remain vigilant against growing budget gaps, the continuing cost impact
of Sandy recovery, and potential risks from
the dysfunction in Washington as exemplified by the recent shutdown.”
The
CAFR shows the General Fund had revenues and other financial sources in
Fiscal Year 2013 totaling $71.029 billion and expenditures and
other financing uses of $71.024 billion, resulting in a surplus of $5
million.
It
also shows that as of June 2013, $1.7 billion had been spent on the
Sandy recovery, and the City continues to incur costs associated with
the storm.
Among other important economic findings, the report contains updates on New York City’s finances, including:
·
The City
Pension Funds paid benefits totaling $12.0 billion during FY
2013. As of June 30, 2013, the City pension funds had an aggregate value
of $137.4 billion, an increase of $15.3 billion from the June 30, 2012
value of $122.1 billion.
·
The Comptroller’s Bureau of Audit issued 84
audits and special reports in FY 2013 identifying approximately $184
million in actual and potential revenues and savings. Reviews of
claims filed against the City identified another $15.7 million in cost avoidance.
·
In FY 2013, the City paid $562.4 million in settlements and judgments (tort and non-tort).
·
The City and its blended component units issued $10.15 billion in
long-term bonds in FY 2013 to finance the City’s capital needs
and refinance outstanding bonds for interest savings. In addition, the
New York City Municipal Water Finance Authority issued $2.30 billion in
long-term bonds for capital and refinancing
purposes. As of June 30, 2013, the City’s outstanding General
Obligation debt totaled $41.59 billion, consisting of $33.93 billion in
fixed rate bonds and $7.66 billion in variable rate bonds.
·
From June 2012 through June 2013, the City added more than 76,400 private-sector
jobs. Although the number of new jobs created was lower than that
of the previous 12 months, the gain still represented a solid 2.3
percent increase in the City’s jobs base. Overall, the city’s
economy grew by an estimated 1.8 percent in FY 2013, slightly faster than the 1.3 percent recorded in the previous fiscal year.
·
The City’s
unemployment rate fell to 8.9 percent in FY 2013 from 9.3 percent
the previous year. The average weekly earnings of private-sector
workers in New York City increased by 4.9 percent in the fiscal year,
twice the national increase. The combination of rising
employment and higher earnings produced an estimated 6.3 percent
increase in year-over-year
income tax withholdings.
The full CAFR report is posted here:
http://on.nyc.gov/Hu1DRZ
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