NYC Comptroller Exposes Major Flaws in DocGo's Migrant Care Contract: Millions in Overpayments and Unsafe Conditions

NYC Comptroller Slams DocGo's Migrant Care Contract: Audit Exposes Major Flaws

The New York City Comptroller has released a scathing audit report exposing significant problems with the Department of Housing Preservation and Development’s (HPD) oversight of its contract with Rapid Reliable Testing NY LLC (DocGo) for providing temporary housing and support services to asylum seekers.

The audit found nearly $11 million in overpayments to DocGo for services purportedly provided during May and June 2023, including unauthorized security staff, vacant hotel rooms, and inadequately supported staff costs. The audit also found that HPD failed to adequately monitor DocGo’s use of subcontractors, did not consistently ensure that all housing units were in satisfactory condition, and did not effectively review reported incidents.

Here are some of the key findings:

• DocGo received over $2 million for additional security staff above the contracted amount. HPD issued a memo authorizing these expenses more than 8 months after the fact, after being questioned by auditors.
• DocGo claimed and was paid almost $1.7 million for vacant hotel rooms where no asylum seekers were lodging.
• DocGo was paid $3.9 million, including $815,000 in profit, for inadequately supported hotel charges.
• DocGo did not provide adequate support for $2.1 million in staff costs.
• HPD did not enforce contract staffing levels for hotel caseworkers and social workers.
• Auditors found deficiencies in 80% of the rooms inspected, including serious health and safety hazards such as mold, water damage, and missing amenities like refrigerators and microwaves.

The audit makes several recommendations to HPD, including recouping overpayments, improving invoice review processes, conducting unannounced inspections of hotels, and ensuring that all subcontractor agreements are documented in writing.

This audit highlights the importance of proper oversight of government contracts and the need to ensure that taxpayer dollars are being used effectively and responsibly.