Audit Report on the Financial and Operating Practices of the 12 Bronx Community Boards
Table I Findings of Noncompliance with Purchasing and Inventory Procedures
AUDIT REPORT IN BRIEF
This audit determined whether the 12 Bronx Community Boards (Boards) complied with certain purchasing and inventory procedures as set forth in the New York City Comptroller’s Internal Control and Accountability Directives (Comptroller’s Directives) #3 and #24; applicable Procurement Policy Board (PPB) rules; the Procedural Guidelines for Community Boards; and the Department of Investigation Standards for Inventory Control and Management; and if the Boards received funding from non-City sources, whether they accounted for the receipt and disbursement of those funds.
Audit Findings and Conclusions
The 12 Boards generally adhered to Comptroller’s Directives #3 and #24; applicable Procurement Policy Board (PPB) rules; the Procedural Guidelines for Community Boards; and the Department of Investigation Standards for Inventory Control and Management.
In addition, bids were appropriately obtained for purchases when applicable; imprest fund purchases did not exceed $250; imprest fund checks had the required authorized signatures, designated specified payees, and had the inscription “void after 90 days”; imprest fund bank accounts were appropriately reconciled; and all major equipment items were on hand and tagged as property of the Board.
Lastly, our examination of the Boards’ Other Than Personal Service expenditures disclosed no instances in which moneys were improperly used. However, there were instances in which the Boards did not comply with certain purchasing and inventory procedures, which are summarized in Table I, below:
|
Audit Finding |
Noted at |
|
Incorrect purchase document used to initiate purchases of goods and services from external vendors. |
All Boards |
|
Payments totaling $8,537.23 were made without proper documentation on file. |
Boards #1, #2, #5, #6, #7, and #9 |
|
A total of $540 in sales tax was inappropriately paid. |
Boards #1, #6, #7, and #10 |
|
Improper use of miscellaneous vouchers. |
Boards #1, #4, #5, #6, #7, #8, #9, #11, and #12 |
|
Imprest fund checks totaling $3,063.45 were issued for services that should not have been paid via the imprest fund. The purchased services were received. |
Board #11 |
|
Incorrect object code charged. |
Boards #1, #2, #3, #4, #5, #7, #8, #10, and #12 |
|
Documentation lacking for fundraising account. |
Boards #2 and #11 |
|
Equipment items not on inventory list. |
Boards #2 and #11 |
|
Inventory list lacked complete information. |
Board #2 |
Audit Recommendations
We make the following nine recommendations to those Boards that had weaknesses found during the audit.
- All the Boards should ensure that PD and PC purchase documents are used to encumber funds for the purchase of goods and services when required by Comptroller’s Directive #24.
- Boards #1, #2, #5, #6, #7, and #9 should ensure that voucher packages and invoices are properly maintained to adequately support all payments.
- Boards #1, #6, #7, and #10 should ensure that sales tax is excluded from all payments made to vendors.
- Boards #1, #4, #5, #6, #7, #8, #9, #11, and #12 should ensure that miscellaneous vouchers are used only for purposes that are allowable according to Comptroller’s Directive #24.
- Board #11 should ensure that all checks issued from its imprest fund are for purposes that are allowable according to Comptroller’s Directive #3.
- Boards #1, #2, #3, #4, #5, #7, #8, #10, and #12 should ensure that all payments are charged to the correct object code.
- Boards #2 and #11 should maintain complete support documentation for all funds collected from non-City sources.
- Board #11 should ensure it maintains adequate support documentation for all expenditures made from the accounts where funds from non-City sources are deposited.
- Boards #2 and #11 should ensure that complete and accurate records are maintained for equipment.