Audit Report on the Financial and Operating Practices of the 18 Brooklyn Community Boards

AUDIT REPORT IN BRIEF

There are Community Boards (Boards) for each of the 59 Community Districts throughout the five boroughs of New York City, of which Brooklyn has 18—Boards 1 through 18. Each Community Board (Board) has up to 50 non-salaried members who are appointed by their respective Borough Presidents and a District Manager as its chief executive officer. The Borough President’s Offices provide administrative assistance to their Boards.

This audit determined whether the 18 Brooklyn 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, #6 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 18 Boards generally adhered to Comptroller’s Directives #3, #6, 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, imprest fund purchases did not exceed $250; imprest fund checks had the required authorized signatures, designated specified payees, and bore the inscription “void after 90 days”; imprest fund bank accounts were appropriately reconciled; and all major equipment items were on hand.

Lastly, our examination of the Boards’ Other Than Personal Service expenditures disclosed no major instances in which monies were improperly used. However, there were minor instances in which the Boards did not comply with certain purchasing and inventory procedures.

Audit Recommendations

We make twenty-four recommendations to the Boards to address weaknesses found during the audit, including that the Boards should ensure that:

• Miscellaneous vouchers are used only for purposes that are allowable by Comptroller’s Directive #24;

• Imprest fund payments are used only for purposes that are allowable by Comptroller’s Directive #3.

• All payments are charged to the correct object code;

• Sales tax is not paid to vendors;

• Complete and accurate inventory records are maintained;

• Chairpersons’ and former Chairperson’s cell phone charges are not paid for by the Boards; and

• Less expensive cell-phone plans are used and stop the practice of making personal calls.