Introduction to the Issue
The NYC Department of Education approved spending close to $750,000 on catering expenditures at one Brooklyn restaurant in fiscal year 2025, according to expense records and government communications. This has raised concerns from City Comptroller Brad Lander over mayoral oversight of the city’s public school system.
Background on the Expenditures
In a March 5 letter to the DOE, Deputy Comptroller for Contracts and Procurement Charlette Hamamgian wrote that the Comptroller’s office had been made aware of a series of 13 consecutive invoices from Fusion East for events between Aug. 28 and Sept. 6, 2024. The 13 invoices — sent to the Brownsville Collaborative Middle School in Brooklyn — totaled to $19,998. Upon further review of expenses approved for food from Fusion East, the Comptroller’s office discovered over $1.4 million in expenses to the restaurant since 2016.
Increase in Expenses
Total expenses saw a marked increase in fiscal year 2023, when the department approved $81,637 in purchase orders to the restaurant, and then again in fiscal year 2024, when the department approved $470,686 in purchase orders. In 2025, approved purchase orders totaled $745,823, according to financial documents.
Response from the DOE
Responding on May 30 to a May 9 letter from the Comptroller’s office raising concern about the “significant spike in purchase orders to Fusion East” between fiscal years 2022 and 2025, the DOE wrote that the “increase in spend is aligned with the mayor’s citywide goal of increasing the utilization of MWBE suppliers for goods and services.” Fusion East, a Caribbean and soul food restaurant in Brooklyn, is a Minority and Women-owned Business Enterprise DOE vendor.
Violations of Regulations
The payments for breakfast and lunch in 10 out of the 13 invoices made out to Brownsville Collaborative at the end of August 2024 exceeded the per-person amount allowed by NYC Comptroller Directive #6. The DOE acknowledged that Brownsville Collaborative violated regulations that govern the purchasing process and will mandate a staff training at Brownsville Collaborative about purchasing procedures.
Concerns from the Comptroller’s Office
The Comptroller’s office raised a broader concern to the department about Fusion East invoices to various public schools — a pattern the department appeared to decline to review on a broader scale in its communication with the Comptroller’s office. The DOE did not confirm the amount of approved expenditures to Fusion East in fiscal year 2025 in time for publication.
Response from City Hall
A City Hall spokesperson wrote that City Hall works “closely with the New York City Public Schools each and every day, and the results of our oversight of the schools speaks for itself — we are making historic progress in reading and math, expanding early childhood education programs, and reducing class sizes, just to name a few.” The spokesperson also stated that they have addressed the situation appropriately.
Conclusion
The NYC Department of Education’s approval of close to $750,000 in catering expenditures at one Brooklyn restaurant has raised concerns over mayoral oversight of the city’s public school system. While the DOE has acknowledged violations of regulations and will take steps to address the issue, the Comptroller’s office remains concerned about the lack of oversight and the potential for excessive spending.
FAQs
Q: How much did the NYC Department of Education spend on catering expenditures at Fusion East in fiscal year 2025?
A: The NYC Department of Education approved spending close to $750,000 on catering expenditures at Fusion East in fiscal year 2025.
Q: What is Fusion East and why was it chosen as a vendor?
A: Fusion East is a Caribbean and soul food restaurant in Brooklyn and a Minority and Women-owned Business Enterprise DOE vendor. It was chosen as part of the city’s effort to increase investment in MWBEs.
Q: Did the DOE violate any regulations in its dealings with Fusion East?
A: Yes, the DOE acknowledged that Brownsville Collaborative violated regulations that govern the purchasing process, and the Comptroller’s office raised concerns about excessive spending.
Q: How has the DOE responded to the concerns raised by the Comptroller’s office?
A: The DOE has acknowledged the violations, will mandate a staff training at Brownsville Collaborative about purchasing procedures, and will review future transactions with Fusion East to ensure compliance with regulations.
Q: What is the Comptroller’s office’s concern about the situation?
A: The Comptroller’s office is concerned about the lack of mayoral oversight over City agencies like the DOE and the potential for excessive spending.
