Audit Report On The Financial And Operating Practices Of The 12 Bronx Community Boards

This audit determined whether the 12 Bronx Community Boards (Boards) are complying with certain inventory procedures for office equipment as set forth in the Department of Investigation’s (DOI) Standards for Inventory Control and Management and are maintaining effective internal controls systems over equipment inventory as required by Comptroller’s Directive #1 Financial Integrity Statement.

Audit Findings and Conclusions

The Boards ensured that all of the 307 major equipment items that were on their inventory lists were on hand and that all fiscal year 2010 purchases were indicated on the inventory lists and accounted for. However, with regard to maintaining complete and accurate inventory lists, the Boards generally did not adhere to the DOI’s Standards for Inventory Control and Management or to Comptroller’s Directive #1 Financial Integrity Statement. Our examination of all major equipment items, including 28 items purchased in Fiscal Year 2010, found that the Boards did not maintain complete and accurate inventory lists of all their computer and electronic equipment.

Audit Recommendations

We make seven recommendations, including that the Boards should ensure that:

• Complete and accurate records of all equipment are maintained.

• Identification tags are affixed to all office equipment items and include sequential internal control numbers.

• Each item of equipment should be assigned a separate control number.

• The relinquishment procedures set forth in the Division of Municipal Supply Services (DMSS) Office of Surplus Activities OSA Agency User Guide are adhered to when disposing of its surplus property.

Agency Response

In their responses, the Boards agreed with the report’s findings and recommendations and described the steps they have taken or will take to implement the report’s recommendations.