Audit Report on the Controls of the Landmarks Preservation Commission Over its Other Than Personal Service Expenditures

AUDIT REPORT IN BRIEF

This audit determined whether the Landmarks Preservation Commission (Commission) is complying with applicable policies and procedures regarding its Other Than Personal Service (OTPS) expenditures. The Commission was established by New York City Local Law in 1965. The Commission is responsible for identifying and designating city landmarks and for regulating changes to historically designated buildings. The Commission consists of a Chairman, 10 non-paid Commissioners, and 54 full-time staff members, including architects, architectural historians, restoration specialists, planners, and archaeologists, as well as administrative, legal, and clerical personnel. The Commissioners meet several times a month for public hearings and public meetings. The Commission’s OTPS expenditures for Fiscal Year 2005 was $404,994.

Audit Findings and Conclusions

The Commission generally complied with applicable PPB rules and Comptroller’s Directives when processing OTPS expenditures. Most purchases were authorized, documented, and approved. There was adequate segregation of responsibilities over the procurement and payment process. In addition, imprest fund checks did not exceed the $250 expenditure limit and, when applicable, purchases were made through the available City requirements contracts. Furthermore, we found no evidence of split purchasing in violation of §3-08 of the PPB rules.

However, some of our sampled expenditures had problems in a number of areas, including: excessive or insufficiently documented food expenditures; incorrect use of City funds;

annual inventory list not maintained; lack of bank reconciliations; and Accountability Reports not prepared or submitted to the Comptroller’s Office on a timely basis.

Audit Recommendations

Based on our findings, we make 11 recommendations, including the following:

Commission officials should:

• Develop and adhere to written procedures regarding meal expenditures that conform to Comptroller’s Directive #6.

• Ensure that the expenditures incurred are for appropriate business needs as stated in Comptroller’s Directive #6.

• Maintain an inventory listing of materials and supplies and submit an Annual Inventory Listing of Materials and Supplies to the Comptroller’s Office, as required by the Comptroller’s “Fiscal Year-End Closing Instructions.”

• Ensure that bank reconciliations are performed on a monthly basis.

• Ensure that they prepare and submit the year-end Accountability Reports to the Comptroller’s Office on a timely basis.

Agency Response

Commission officials agreed with 7 of the audit’s 11 recommendations, disagreed with 2 recommendations, and did not respond to 2 recommendations.