The City of New York Office of the Comptroller Bureau of Financial Audit
Audit on the New York Yankees Rental Credits For the Fourth Quarter of 2001
(October 1, 2001 - December 31, 2001)
FR03-069A
January 21, 2003
Audit Report in Brief
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the complete audit (Size: 2522KB)
Background
The Comptroller’s Office is required to audit
all rental credits claimed by the New York Yankees (Yankees) for
the maintenance of City-owned Yankee Stadium. Under the terms of
the lease, the Yankees are responsible for the care and upkeep of
Yankee Stadium, and the costs incurred by the Yankees for maintaining
the stadium are offset against any rental income due the City from
the Yankees. Thus, every approved dollar spent and accounted for
as a rental credit for the maintenance of the stadium results in
a dollar-for-dollar decrease in the rent due the City.
Audit Findings and Conclusions
The audit found that Yankees rental credits submitted
for the fourth quarter of 2001 were overstated by $148,243.65, as
follows:
- $48,445.65 in payroll charges consisting of excess security
charges and duplicate and undocumented salary expenses.
- $83,899.11 in payments to PEM Electric consisting of labor and
material costs that, based on the terms of the agreement, cannot
be charged to the City.
- $1,075.73 in purchases of supplies, consisted of items that
are not chargeable to the City.
- $14,498.13 in Yankee Stadium repairs that are not chargeable
to the City
- $325.03 in "Other Expenses" that are chargeable to
the City.
Audit
Recommendations
We recommend that the Yankees deduct: $148,243.65
from the total rental credits taken for maintenance pertaining to
the fourth quarter of 2001; ensure that all maintenance credits
claimed are properly supported by sufficient documentation; and,
obtain appropriate approvals before submitting rental credits to
the Comptroller’s Office. In addition, we recommend that the
Department of Parks and Recreation (Parks) ensure that the Yankees
comply with the report’s recommendations.
The Yankees responded that they accept $148,243.65
as a Yankees cost.
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