Briefing Doc: NYC Comptroller's Office Reports on Foster Care Safety and MWBE Investments

This briefing doc reviews two reports published by the New York City Comptroller’s Office:

1. Audit Report on the Administration for Children’s Services’ Monitoring of the Safety of Children in Foster Care
2. MWBE and Emerging Manager Pension Investments, Fiscal Year 2024

Report 1: Foster Care Safety

Main Themes: This audit report examines the effectiveness of the Administration for Children's Services (ACS) in ensuring the safety of children placed in foster care.

Key Findings:

• Generally Adequate Monitoring: The report concludes that ACS's mechanisms for monitoring children in foster care are generally adequate.
• Downward Trend in Maltreatment, but Persistent Issues: While instances of substantiated neglect and abuse have declined from 4% in 2020 to 3.1% in 2023, the audit identifies over 2,000 cases involving more than 1,600 children during this period.
• Location of Incidents: Over 76% of substantiated incidents occurred during family visitations, highlighting the complexities and challenges associated with maintaining child safety in these settings. Approximately 24% of incidents occurred within the foster care setting itself.
• Data Gaps: The report points out that ACS lacks comprehensive data on incidents occurring during court-ordered unsupervised visitations and trial discharges, hindering the agency's ability to identify trends and make informed recommendations to Family Court.

Important Quotes:

• "ACS data shows that between Fiscal Years 2020 and 2023, there were more than 2,000 cases of substantiated neglect and/or abuse involving more than 1,600 children."
• "Tracking and evaluating this information could help ACS identify trends in the frequency of incidents. Evaluating these should inform future recommendations by ACS to Family Court."

Recommendations: The report recommends that ACS improve data collection on specific incident types and strengthen its analysis to inform better decision-making and collaboration with the Family Court.

Report 2: MWBE and Emerging Manager Pension Investments

Main Themes: This report highlights the New York City Retirement Systems' efforts to increase investments with Minority- and Women-Owned Business Enterprises (MWBE) and Emerging Manager (EM) firms.

Key Findings:

• Significant Increase in MWBE Investments: MWBE assets under management have surged by nearly 40% since Comptroller Lander took office, reaching $23.08 billion, representing 13.3% of actively-managed U.S. assets.
• Strong Performance: Both EM and MWBE managers have consistently outperformed benchmarks, demonstrating their value and contribution to the Systems' strong overall returns.
• Commitment to Expansion: The Systems plan to further expand their Emerging Manager programs, aiming to reach 20% allocation to MWBE managers and 10% to Emerging Managers by 2029.
• Diversity, Equity, and Inclusion (DEI) Due Diligence: The report emphasizes the integration of DEI considerations into the investment manager due diligence process, assessing policies, practices, and workforce diversity.