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Audit Finds Lax Handling of Cash at City Drug Clinics

By: Brian Meyer
News Staff Reporter

Workers at a city-run drug counseling clinic would sometimes hide hundreds of dollars in cash from client fees under a kitchen sink when the facility closed at night.

When an anonymous tipster alerted Buffalo's comptroller to two thefts in the North Street clinic, Andrew A. SanFilippo ordered an audit that uncovered what he called "disturbing" findings. He said operations were plagued by a "total lack of financial controls."

"It created an environment there where it would be easy for someone to steal from the operation," he said.

In fact, two thefts occurred, including a December 2008 heist when someone found $834 stuffed in envelopes beneath the kitchen sink. A police report found no evidence of a break-in.

Six months later, $585 was reported stolen from the clinic's front desk. A police report said a complainant suspected the theft was committed by an "in-house worker."

City officials said no arrests or disciplinary action has been taken against any employee. No perpetrator has been caught.

SanFilippo said the thefts triggered a fiscal review that unearthed troubling practices at Buffalo's three substance abuse clinics. The other facilities are located in the Central Park Plaza and on Genesee Street near Moselle Street.

Employees ignored a rule that barred clinics from amassing more than $100 in fees. They failed to make timely deposits, and auditors said clinics didn't even have safes until after the investigation began.

Other problems included lax efforts to collect past-due fees from clinics, poor tracking of receipts and payments, and the absence of training for employees who had no experience overseeing finances.

"To expect drug counselors and clinical nurses to be handling money and be responsible for the depositing, protection and security of those funds leaves a lot to be desired," said SanFilippo.

The city's chief auditor said his office performed a follow-up visit after Mayor Byron W. Brown's administration was given a list of recommendations for improving operations in the clinics.

"They made some efforts to strengthen operations," said Darryl McPherson.

Mayoral spokesman Peter K. Cutler said the administration's comments are contained in a report by Community Services Commissioner Tanya Perrin-Johnson following her review of the audit.

"The Division of Substance Abuse Services has made tremendous strides to enhance fiscal integrity," Perrin-Johnson wrote. "Staff training and development will become a cornerstone as we continue to address the needs of this vulnerable population."

But the commissioner made no mention of the mayor's push earlier this month to start a gradual phase-out of clinic operations. Brown's plans to eliminate one substance abuse worker from his new budget were blocked by the Council. Plans called for closing one clinic this year and a second clinic next spring. Administration officials said they believe nonprofit groups and Erie County could provide more efficient counseling to clients who are battling drug and alcohol problems.

The critical audit appears on today's(Tuesday) Common Council meeting agenda. As of Monday, several lawmakers said they had not yet read the audit. Council President David Franczyk said he reviewed the report, and he stands by lawmakers' decision to oppose closing the drug clinics.

"If there are problems, they should be corrected," Franczyk said. "But you don't throw the baby out with the bath water."