Comptroller: Contractor Ineligible For $4M In State Payments

ALBANY, N.Y. (AP) — State officials say an audit has found that a national drug and alcohol treatment services provider received nearly $4 million in ineligible payments from New York.

Comptroller Thomas DiNapoli says auditors found Phoenix House New York made invalid claims for reimbursement for expenses that didn't comply with its $51 million contract with the state to provide outpatient, inpatient and residential drug and alcohol addiction treatment services at several locations in the New York City area.

DiNapoli says nearly $3 million of the ineligible payments were for unallowable administrative expenses.

The payments were made by the state Office of Alcoholism and Substance Abuse Services. Agency officials say they'll take steps to recover the improper payments and improve oversight of service providers.

Phoenix House officials say the funds it received were properly accounted for.