NYC Social Services Provider Blows City Money on Cruise with Staff, Fast Food: Review

A provider of shelters and services that has repeatedly been turned on for failing to handle the homeless situation at Penn Station blew up the city’s money on a booze cruise, fast food and movie tickets for its staff, according to an audit.

The Bowery Residents ‘Committee charged the city with at least $ 2,653 for the $ 36,510-provided boat trip, along with $ 1.4 million in other expenses that were either unsupported or unauthorized, the audit of State Inspector Tom DiNapolis’ office found.

“It’s a cause for concern when the nonprofit employed to tackle the growing homelessness crisis has so many red flags on the expenses it bills the city. Charging taxpayers for a booze cruise is inappropriate at best,” he said. said DiNapoli in a statement.

BRC’s work on MTA hubs including Penn Station was previously called “very expensive” and “minimally efficient” by the MTA Inspector General.

The nonprofit had $ 527 million in service contracts for homeless people in the city from 2019. DiNapolis’ audit covered its 200-bed Jack Ryan Residence on West 25th Street for the mentally ill and chemically addicted homeless adults.

State Comptroller Tom DiNapoli called for BRC spending "inappropriate."
State Attorney Tom DiNapoli called the BRC’s spending “inappropriate.”
James Messerschmidt

Auditors found that hundreds of thousands of dollars in staff and facility expenses such as rent and supplies were incorrectly allocated to BRC’s Jack Ryan Residence contract instead of to other BRC programs located in the same building.

BRC also demanded compensation for $ 3,482 at AMC Theaters and $ 1,500 at Wendy’s, the audit said – but could not provide invoices or other documentation for nearly half of that money. The rest had been filed as “staff appreciation.”

The organization allocated $ 2,653 for the cruise to the Jack Ryan contract, which was apparently for “personnel training and recruitment,” the report said. BRC officials declined to tell auditors whether the rest of the cruise expenses had also been charged by the city.

The State Auditor’s audit is the latest black eye for de Blasio’s homeless services department, whose $ 16 billion oversight of contracts over Hizzon’s tenure has been repeatedly investigated.

The Jack Ryan Residence at 127 W. 25th St.
The audit found that hundreds of thousands of dollars were incorrectly allocated to BRC’s Jack Ryan Residence contract instead of to other BRC programs located in the same building.
John rock

The BRC is one of a handful of scandal-ridden crisis center operators, as The Post reported in October, received $ 4.6 billion in city tax dollars during Mayor Bill de Blasio’s eight years in office – one in four dollars spent on contractors by the Department of Homeless Services.

Other groups are accused of using the city’s money to pay for their director’s lavish lifestyle.

DHS was forced to withdraw from one of its largest providers, Brooklyn-based CORE Services Group, after twin surveys conducted by the Post and The New York Times revealed violent nepotistic hiring practices and self-trafficking that also enriched its CEO, Jack Brown, as several of his friends and relatives.

A homeless man inside Penn Station, where BRC's work was called
A homeless man inside Penn Station, where BRC’s work was called “minimally efficient” by the MTA Inspector General.
Stephen Yang |

BRC CEO Muzzy Rosenblatt did not return a request for comment.

DHS did not respond to the audit results. The agency’s spokesman, Isaac McGinn, called the report “deficient”, “inaccurate” and an “attempt to find fault where there is none and politicize our vital work with the BRC.”

“The BRC is an excellent homeless organization that does extraordinary work,” McGinn said in a statement. “Jack Ryan’s shelter is a cornerstone of Manhattan society and has served as a lifeline for thousands of New Yorkers in need for many years.”


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