The Honorable Bill de Blasio, Mayor
City of New York
City Hall
New York, NY  10007

The Honorable Melissa Mark-Viverito, Speaker
New York City Council
250 Broadway, Suite 1850
New York, NY  10007

New York City Council
City Hall
New York, NY  10007

Dear Mayor de Blasio, Speaker Mark-Viverito and Members of the City Council:

Attached please find the annual report on the operations of the Audit Bureau of the New York City Comptroller’s Office for Fiscal Year 2015.  Section 93 (f) of the City Charter states that no later than March 1st of each year the Comptroller must provide such a report to the Mayor and City Council on all major audit activities of City agencies conducted in the previous fiscal year.

Under the City Charter, the Comptroller’s Office must audit some aspect of every City agency at least once every four years in accordance with generally accepted government auditing standards promulgated by the Comptroller General of the United States.  In Fiscal Year 2015, the Audit Bureau issued 80 audits and special reports resulting in $616.5 million in actual and potential revenue and savings.  Reviews of claims filed against the City identified another $203,000 in potential cost avoidance.

As the City’s chief fiscal officer, it is my duty to do everything in my power to maintain the City’s fiscal health.  The Audit Bureau uses its power of audit to find waste, mismanagement and inefficiency in City government, as well as to root out fraud and abuse, while championing improvements that can achieve more efficient, effective City operations and services.  The Bureau examines every corner of local government to improve services and save tax dollars wherever possible. The Bureau makes hundreds of recommendations to improve City programs that can have a positive impact on service delivery if implemented.  The audits summarized in this annual report have been important in accomplishing our task of ensuring that government resources are not wasted, but put to work to improve the lives of all New Yorkers.

While agency managers are responsible for resolving and implementing recommendations promptly and effectively, the auditors follow up to see that action has been taken and intended results realized.  A review of the implementation of recommendations made in this year’s audit reports found that 39 City agencies and other related entities reported implementing or being in the process of implementing 331 recommendations (75.2 percent); they reported not implementing 109 recommendations (24.8 percent).  This is the highest level of compliance by audited entities in five years, indicating that the City is greatly benefiting from our audit efforts.

The Comptroller’s Office welcomes your interest in ensuring that all recommendations made by the Audit Bureau be considered by City agencies.  The benefit from audit work is not in the recommendations made, but in their effective implementation.  Corrective action taken by management is essential to improving the effectiveness and efficiency of government operations.  To that end, we have provided supplementary information on the status of all our recommendations by both audit report and by agency.

Sincerely,

Scott M. Stringer