Criticized shelter provider scores $15M city contract

Comptroller's office told city to stop doing business with Aguila Inc. last year
August 08, 2014 02:30PM

A Bronx nonprofit has scored a five-year contract from the city worth $5 million to run a homeless shelter less than a year after former comptroller John Liu said it should no longer be given city money to operate such facilities.

Liu charged the operator, Aguila Inc., with making accounting errors and allowing unsafe and unclean conditions after during an audit in October, Capital New York reported. In the audit, Liu claimed the Department of Homeless Services did not properly monitor Aguila, according to the news site.

DHS officials said Aguila made a number of improvements following the audit, such as changing management, creating new fiscal policies and addressing subcontracting issues.

“The Department of Homeless Services and the Mayor’s Office of Contracts reviewed the comptroller’s previous concerns [and] are satisfied that the provider has addressed those issues and currently complies with the standards outlined by the City of New York’s contracting requirements,” an agency spokesperson told Capital NY in an email. [Capital NY] – Tom DiChristopher