Audit Report on the Operating Practices and Procedures of the Grand Central Partnership Business Improvement District

AUDIT REPORT IN BRIEF

This audit of the Grand Central Partnership Business Improvement District (GCP) covered the organization’s provisions of services, compliance with its City Contract, and adequacy of internal controls over funds and operations. The GCP is funded by special assessments levied against district property owners and uses these moneys to enhance and promote the district. The City Department of Small Business Services (DSBS) supervises and oversees the GCP. In Fiscal Year 2005, the GCP had revenue of $11,791,106 and expenditures of $12,479,165, the difference of $688,059 coming from surplus funds from prior years.

Audit Findings and Conclusions

The GCP has provided the services called for in its District Plan, has generally complied with the key terms in its DSBS contract, and has adequate internal controls over its funds and operations. Minor issues for improvement include keeping BID members informed of the GCP’s activities, documenting non-field employees’ time, and ensuring that all deposits are insured.

Audit Recommendations

To address these issues, we make three recommendations, namely, that the GCP should:

• Enhance its efforts to promote the GCP among its members, increase awareness of its programs, and notify members about coming events and meetings;
• Require non-field personnel to record on a time sheet hours worked each day and ensure that the time sheet is approved by a supervisor; and
• Place its uninsured deposits in collateralized accounts.