State Billed for Montauk Yacht Club 'Booze Cruise'

The Montauk Yacht Club, where a 2012 conference held for a state mental health contractor has drawn criticism from New York State Comptroller Thomas DiNapoli.

Morgan McGivern

May. 20, 2015

Taylor K. Vecsey

A mental health provider inappropriately charged more than $150,000 to the state Office of Mental Health, including for a "booze and sunset cruise" at a conference that was held at the Montauk Yacht Club Resort and Marina, according to the office of New York State Comptroller Thomas P. DiNapoli.

PSCH, a Flushing-based company, had a five-year, nearly $30 million contract with the state Office of Mental Health to provide services and housing to people with mental disabilities and substance abuse. PSCH charged $152,680 in costs that could not be sustantiated or are not allowed under the contract, Mr. DiNapoli's office said in a press release on Wednesday; only part of that went to the Montauk event.

The board of directors and executive staff at PSCH atttended a two-day training conference at the yacht club in late October 2012. The company billed the state office $31,908 — more than half of the $62,858 spent at the conference. The comptroller's office said $10,723 was for alcohol and $5,064 was for attendees' guests. Some board members decided to stay an extra night after the conference ended, resulting in $13,378 for rooms and $2,743 for a sunset cruise, tips, and gifts.

"The rules for conference costs are clear," Mr. DiNapoli said in the release. "And lavish parties with alcohol, cruises and extra guests are not allowable. State agencies must make sure that contractors are reimbursed for legimitate expenses only."

About $1.6 million in expenses that PSCH claimed between July 1, 2012 through June 30, 2013 were examined. Nearly 10 percent in expenses failed to comply with the terms of the contract, worth about $6.8 million during that time period, the report said.

The comptroller's office also found PSCH charged nearly $98,000 for other duplicate, unsubstantiated, or inappropriate charges, as well as $22,901 for a staff picnic in Queens.

Following Mr. DiNapoli's report to the Office of Mental Health Commissioner Dr. Ann Marie T. Sullivan, dated Tuesday, the office greed to recover the amount they reimbursed the provider. PSCH staff will also receive training to recognize what are allowable costs and what are not.