CONTACT:
Bill
Reynolds
(518) 474-4015
FOR RELEASE:
Immediately
October 16, 2009

DiNAPOLI: SO FAR, STIMULUS MONEY
FOR LOCAL HIGHWAYS BEING SPENT RIGHT

An audit
by State Comptroller Thomas P. DiNapoli of some of the first local highway
projects across New York state funded with federal stimulus moneys shows
that highway departments made sure they got the best prices possible from
construction contractors – and took the steps necessary to ensure the
contractors were able to do the job.  The audit is part of DiNapoli’s
ongoing initiative to audit New York’s use of federal stimulus money to
be sure the funding is protected from waste, fraud and abuse.

“This is a good start,” said DiNapoli.
 “Local governments receiving federal stimulus moneys are making
sure they’re hiring contractors who will get the job done as specified,
at the best possible price. We’ll continue to watch how stimulus funds
are being used.  The state and local governments across New York have
to make every stimulus dime count, and our audits and oversight will make
sure they do that.”  
 
The audit of Nassau, Westchester, Alleghany
and Essex counties, as well as the cities of Watervliet, Cohoes, Glens
Falls, Plattsburgh and Watertown is the first in a series of local government
audits DiNapoli has planned to ensure effective use of New York’s share
of federal funds under the American Recovery and Reinvestment Act (ARRA)
of 2009.  

The audit reviewed 12 projects by the nine
municipalities, totaling $30.8 million.  The audit covered the period
of March to August 2009.

DiNapoli’s audit found that the local governments
followed sound procurement procedures when awarding contracts funded by
the ARRA. Six of them adhered to bidding laws and appropriately awarded
their ARRA highway projects to the lowest responsible bidders. The remaining
three local governments indicated they would save money by using state
contract vendors for their projects.

In addition to auditing different aspects
of local governments’ use of stimulus funds, DiNapoli created a website
(http://www.openbooknewyork.com/stimulus)
to allow taxpayers to track contracts and spending related to New York’s
share of federal stimulus funds.  DiNapoli also assigned staff to
track, review and audit all stimulus fund-related contracts and spending.
The audit, which was conducted according to
Generally Accepted Government Accounting Standards, is available at http://www.osc.state.ny.us/localgov/audits/swr/2009/federalstimulus.pdf.

###