Audit of the Travel Expenses of the Department of Education’s Central Office

Audit Report In Brief

This audit determined the adequacy of the Department of Education’s (DOE) internal controls over the travel expenses of its Central Office and whether these travel expenses were necessary, reasonable, and for authorized individuals.

Sampled expenditures were in accordance with Comptroller’s Directive #6, the NYC Education Department Standard Operating Procedures Manual (SOP Manual), and with the DOE internal expense guidebook. The sampled expenditures were necessary, reasonable, and for authorized individuals. For the most part, sampled expenditures were properly documented and approved by appropriate individuals.

However, DOE units do not always adhere to the written procedures in place for the processing of travel expenses. This has resulted in inconsistencies in the processing of vouchers for payments, as described below.

• Two vouchers, totaling $49,044 indicated food expenses ($30,600) in excess of the per-person amount allowed.
• Two vouchers for E-Z Pass expenditures, one for $20,000 and the other for $39,000, were processed for payment even though they did not have all the required information or supporting documentation attached to the voucher at the time that the vouchers were submitted for payment.
• One voucher, in the amount of $71,400, issued for the payment of 1,020 monthly Metrocards lacked the names of the individuals who were issued the cards.
• Four voucher packages, totaling $2,983, lacked supporting documentation.
• One purchase order for out-of-town expenses, totaling $807, lacked management’s authorization.
• One voucher package for out-of-town expenses, totaling $1,239, lacked an OP221 form.

In addition, five vouchers, totaling $256,930, were charged to incorrect object codes. The use of incorrect object codes can compromise management’s ability to properly plan future budgets.

To address these issues we recommend that DOE should:

• Ensure that its travel expenditures adhere to the established written procedures of Comptroller’s Directive #6, the expense guidebook, and the SOP Manual.
• Consider designating one office to be responsible for the final processing of Central Office travel vouchers.
• Ensure that all expenditures are charged to the correct object codes.

The matters covered in this report were discussed with DOE officials during and at the conclusion of this audit. A preliminary draft report was sent to DOE officials and discussed at an exit conference held on March 24, 2004. On April 15, 2004, we submitted a draft report to DOE officials with a request for comments. We received a written response from DOE on May 5, 2004. DOE officials agreed with two of the three audit recommendations and stated that they have taken steps to implement them