Audit shows OPWDD overpaid contractor by $1.1M

Posted at: 07/27/2013 11:55 AM
By: Cadence Acquaviva

A recent audit conducted by the State Comptroller shows the Office for People with Developmental Disabilities (OPWDD) overpaid a contractor by more than $1.1M.

A report released by Comptroller DiNapoli's office states the error occurred because OPWDD based payments on budgeted expenses, rather than actual costs.

Auditors examined OPWDD's contract with the Association for the Advancement of Blind and Retarded (AABR) and discovered that when developing the original reimbursement rates, OPWDD used AABR's budgeted expenses for 2006.

DiNapoli's auditors raised concerns that if OPWDD continues to pay contractors based on budgeted expenses, millions more could be lost in overpayments.

OPWDD officials are working to develop a more accurate method of developing reimbursement rates.