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Audit: New York Dormitory Authority reports inflated MWBE contracting figures

An audit conducted by the New York State Comptroller's office has found that for the past four years the Dormitory Authority (DASNY) misreported the level of minority and women business (MWBE) participation on its contracts and lacks clear procedures for setting MWBE participation goals.

Under state law, all agencies are required to make good faith efforts to include MWBEs in their procurements, establish annual MWBE goals, and report every quarter to the Department of Economic Development on their level of MWBE participation.

Over the period the audit examined, DASNY set goals ranging from 20 percent to 26 percent but were unable to explain the methodology behind those figures. Moreover, auditors discovered that DASNY overstated its awards to MWBE prime contractors by 24 percent and MWBE subcontractors by 15 percent.

The Comptroller's investigation also found instances where MWBE firms that did not perform a commercially useful function on a contract were still counted toward MWBE participation goals.

To read the Comptroller's report, visit http://osc.state.ny.us/audits/allaudits/093015/14s7.pdf