Audit Report on the Controls of the Kings County District Attorney’s Office Over Its Computer and Electronic Equipment

This audit determined whether the King’s County District Attorney’s Office (KCDA) maintains adequate controls over its computer and electronic equipment inventory.

KCDA is responsible for protecting the public by investigating and prosecuting criminal conduct in Kings County, enforcing the provisions of the penal law and all other statutes,¹ screening new cases, and preparing and presenting cases in court for hearing, trial, or appeal.

As of June 30, 2011, KCDA had 2,836 items in its computer and electronic equipment assets inventory (desktop computers, laptops, printers, copiers, smart phones, etc.) valued at approximately $4.3 million (based on original purchase or replacement cost as provided by KCDA). An accurate and reliable inventory system for computer and electronic equipment assets is essential to track and safeguard the assets.

Audit Findings and Conclusions

The audit concluded that KCDA needs to improve its controls over its computer and electronic equipment assets to ensure that they are adequately tracked and accounted for in its inventory records. The audit showed that 30 (16 percent) of the 191 tested equipment items were either not found or properly accounted for or not at the locations indicated in KCDA’s inventory records. The audit also disclosed that KCDA did not consistently use property identification tags to identify and track its equipment inventory. Equipment valued at $3.3 million (77 percent) of the total value of $4.3 million of KCDA’s equipment inventory were not identified, tagged, or tracked with a property asset identification tagging system. Further, the audit disclosed that KCDA did not maintain a perpetual inventory system, did not update its inventory records as changes occurred, did not adequately segregate duties within its inventory processes, and did not have formal policies and procedures governing inventory of its computer and electronic equipment assets.

Audit Recommendations

To address the above weaknesses, the audit made four recommendations, including that KCDA should:

• Continue with the development and implementation of its perpetual inventory database. The database should provide for accurate, detailed accounting of its equipment inventory. These records should be updated as needed to reflect the acquisition, disposal, reassignment, or relocation of assets and should be reconciled periodically to ensure accuracy and completeness. Variances (i.e., missing equipment) should be investigated and reported to appropriate channels.

• Ensure that property identification tags are affixed to all computer and electronic equipment items and include a sequential internal control number.

KCDA Response

We received a written response from KCDA officials on February 24, 2012. In their response, KCDA officials generally agreed with three of the audit’s four recommendations and did not address one other associated with the lack of adequate segregation of duties among those who handle the inventory, conduct the inventory count, and record inventory transactions.