Audit Report on the Controls of the Department of Homeless Services Over Its Computer Equipment

AUDIT REPORT IN BRIEF

The Comptroller’s Office performed an audit on the controls of the Department of Homeless Services (Department) over its computer equipment. The Department’s Office of Information Technology (OIT) is responsible for providing information technology services to the agency’s administrative sites and shelters. OIT purchases, receives, inventories, safeguards, installs, repairs, and disposes of computer equipment. During Fiscal Years 2000, 2001, and 2002, the Department spent approximately $4.1 million on computer equipment.

The Department has widespread problems with its computer inventory system. It has no written policies and procedures for recording, reporting, and safeguarding its computer inventory. New computer equipment items, such as network equipment, monitors, printers, and laptops were stored in hallways and in other unsecured areas of the agency. As a result of the Department’s poor inventory control practices, $1,841,015 in computer equipment purchased during the audit period was not listed on the Department’s inventory records, of which approximately $1,640,180 in computer equipment remains unaccounted for.

Normally, we would recommend a series of actions to the Department designed to address the problems identified. However, the managerial and operational problems are so prevalent and pervasive that they cannot be readily addressed by fine-tuning the Department’s inventory system. Therefore, it is clear that the entire system has to be overhauled. Consequently, we recommend that the Department:

• Create an inventory project team, reporting to the Commissioner whose ultimate goal would be to develop computer inventory policies and procedures and to ensure that the inventory control system is: (1) accurate (all computer equipment is accounted for); (2) timely (records are adjusted to immediately reflect receipts, transfers, and relinquishments); and (3) encompassing (the system tracks all items received).
• Ensure that all computer equipment is properly safeguarded. In that regard, all uninstalled items of computer equipment should be secured in locked rooms.
• Refer all significant unresolved discrepancies to the Department of Investigation for further investigation.