NYC shelter operators pocket massive taxpayer-funded salaries while others hide pay: Report
DECEMBER 18, 2024
City council grills Department of Social Services over alleged mismanagement and lack of transparency.
During a Tuesday New York City Council meeting, members discussed an October report that discovered rampant mismanagement within the city's taxpayer-funded shelter system, including conflicts of interest and nepotism.
The report resulted from a year-long investigation by New York City's Department of Investigation into the city's $4 billion homeless shelter system.
'We are paying an indirect cost rate.'
The investigation uncovered instances where shelter providers had personal business interests that enabled them to receive additional payments, including situations where executives were employed by a private company that the shelter contracted using public funds.
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