Uncovering the Mystery: Why Did the NYC Department of Education Channel $745,000 into a Solitary Brooklyn Eatery During the Last Fiscal Year?
NYC Department of Education Faces Scrutiny Over Large Catering Expenditure
The New York City Department of Education (DOE) has come under scrutiny for its substantial expenditure on catering services from a single Brooklyn restaurant, Fusion East, during fiscal year 2025.
According to reports, the DOE approved close to $750,000 in catering expenditures at Fusion East in 2025. This represents a significant increase in spending compared to previous years, with $81,637 in purchase orders in fiscal year 2023 and $470,686 in fiscal year 2024 [1][3][4][5].
The surge in spending has raised concerns among officials, including New York City Comptroller Brad Lander, who has questioned the appropriateness of such a large, concentrated expense, suggesting potential wastefulness [4].
However, it is unclear whether the DOE’s spending with Fusion East fully adheres to the NYC Comptroller Directive #6, which typically governs expenditure oversight and vendor compliance for city agencies. The Comptroller’s expressed scrutiny and public reporting suggest questions have arisen about whether these spending practices align with the directive or established controls on vendor contracts and expenditures [4].
The DOE's response to the Comptroller's office stated that the increase in spending over the years is aligned with aims to support Minority and Women-owned Business Enterprises (MWBEs), of which Fusion East is one [6].
In a separate development, the Brownsville Collaborative Middle School in Brooklyn was found to have violated regulations governing the purchasing process, as laid out in the DOE’s Standard Operating Procedures and the Comptroller's Directive #6 [7].
From Aug. 28 to Sept. 6, 2024, Fusion East sent 13 invoices to Brownsville Collaborative, totaling $19,998 [8]. Payments for breakfast and lunch in ten of these invoices exceeded the per-person amount allowed by NYC Comptroller Directive #6 [7].
In response to the concerns raised, the DOE will mandate a staff training at Brownsville Collaborative about purchasing procedures and require the school to "create and submit a plan for strengthening internal controls" [2].
City Hall spokesperson claims that they are making historic progress in various areas such as reading, math, expanding early childhood education programs, and reducing class sizes [9]. However, the Comptroller's office is concerned that standard procedures have not limited excessive spending in the department [7].
The DOE has not conducted a comprehensive review of all Fusion East transactions [7]. Additionally, Fusion East founder and owner Andrew Walcott did not respond to a request for comment in time for publication [10].
The Comptroller's office has raised a broader concern to the department about Fusion East invoices to various public schools, suggesting that the issue may not be limited to Brownsville Collaborative [4]. The DOE's May 30 response to the Comptroller's office did not confirm the exact amount of approved expenditures to Fusion East in fiscal year 2025 [4].
The NYC Department of Education and Fusion East are currently under review for their spending practices and compliance with established regulations.
[1] New York City Department of Education Spending [2] DOE Requires Staff Training and Internal Controls [3] Fusion East Catering Contract [4] Comptroller's Office Raises Concerns [5] DOE Spending on Fusion East [6] DOE Response to Comptroller's Office [7] Comptroller's Audit Finds Violations [8] Fusion East Invoices to Brownsville Collaborative [9] City Hall Spokesperson on Progress [10] Fusion East Owner's Response
- The NYC Department of Education's substantial expenditure on catering services from Fusion East, a Brooklyn-based restaurant, indicates a significant shift in the department's finance-related business practices, particularly in terms of vendor compliance and contract management.
- Despite the NYC Comptroller’s Directive #6 aimed at governing expenditure oversight and vendor compliance for city agencies, concerns have been raised about the DOE's business dealings with Fusion East, suggesting potential non-adherence to established regulations and controls.
