N.Y. Audit Questions Addiction-Treatment Group Spending on Perks

April 25, 2013, 10:42 am

A New York-based addiction-treatment charity used state funds to provide hundreds of thousands of dollars worth of perks to its top officials, the Associated Press writes, citing a report issued Wednesday by the state comptroller’s office.

The audit found $223,000 in alleged questionable expenditures by Phoenix Houses of New York, including bonuses and cars for executives and an employee’s purchase of Walmart gift cards for alcohol, cigarettes, and Sony PlayStations.

During the period covered by the report, Phoenix House received $8.5-million in state money that Comptroller Thomas DiNapoli said was “intended to treat people struggling with substance and gambling addiction, not to subsidize unwarranted perks for high-salaried executives.” A spokeswoman for the charity said it would cooperate with authorities to resolve any concerns.