Audit Report on the Brooklyn Borough President’s Office’s Cash Controls Over Receipts From Minor Sales
EXECUTIVE SUMMARY
This audit determined whether the Brooklyn Borough President’s Office (BBPO) is in compliance with Comptroller’s Directive #11, Cash Accountability and Control.
The BBPO has a Topographical Bureau that, for a fee, supplies the public with street maps, grade studies, and certifications related to building and development, and issues new or alternative street addresses. The BBPO accepts certified checks and money orders as payment for the fees it charges for these services. It only accepts cash for the reproduction of maps because those fees are nominal.
According to the City’s Financial Management System, the BBPO deposited a total of $219,454 in revenue generated from sales made by the Topographical Bureau during Fiscal Year 2014.
Results
The audit found that the BBPO generally complied with the cash control procedures set forth in Comptroller’s Directive #11 for its Topographical Bureau sales. Our review found that the BBPO adequately segregated duties with the various cash handling processes. Except for two deposits, the BBPO ensured that the cash receipt amounts agreed with the amounts deposited in bank accounts and deposits were entered in to the City’s Financial Management System. All checks received were made payable to the BBPO.The BBPO also maintained copies of bank deposit slips as well as pre-numbered customer receipts. The daily cash receipts were stored in the agency safe until the deposit was made.
However, the audit found that the BBPO needs to enhance its control procedures in three areas. Specifically, the BBPO accepts cash as payment for services provided, does not deposit receipts into the City’s treasury on a daily basis, and does not perform a timely reconciliation between the bank deposit and the cash receipt tally sheet. As a result, we found two deposits during April 2014 where the total amounts of the funds deposited into the bank were each $100 less than the amounts that were actually collected. The BBPO failed to discover one of the discrepancies for seven months. Upon discovery, it deposited $100 in the bank to rectify the situation shortly after discovery. The second shortfall was not found until March 25, 2015, when it was pointed out by the auditors, eleven months after the deposit was made.
In its response, the BBPO did not dispute the report’s findings and recommendations and described steps they will take to “improve upon their current practices.”