Audit Report On the Financial and Operating Practices of the Financial Information Services Agency

This audit determined whether the Financial Information Services Agency (FISA) complied with certain purchasing procedures as set forth in the New York City Charter, the New York City Comptroller’s Internal Control and Accountability Directives (Comptroller’s Directives) #3, “Procedures for the Administration of Imprest Funds”; #6, “Travel, Meals, Lodging and Miscellaneous Agency Expenses”; #24, “Agency Purchasing Procedures and Controls”; applicable Procurement Policy Board (PPB) rules; and the New York City Department of Investigation (DOI) Standards for Inventory Control and Management.

Audit Findings and Conclusions

With the exception of the issues noted below, we found that the FISA generally adhered to the requirements of Comptroller’s Directives #3, #6, and #24, DOI’s inventory standards, and applicable PPB rules. In addition, our examination of the FISA’s Other Than Personal Service (OTPS) expenditures disclosed no instances in which moneys were improperly used. However, FISA did not always comply with certain aspects of Comptroller’s Directive #3, #6, and #24, and DOI’s inventory standards. Specifically:

• Expenses were charged to the incorrect object codes.

• Miscellaneous Vouchers were improperly used to pay two expenditures.

• Imprest Fund was improperly used for recurring expenditures.

• Incomplete and inaccurate inventory records were maintained.

We recommend that FISA should:

• Charge all purchases to the correct object code.

• Ensure that miscellaneous vouchers are used only for purposes that are allowed by Comptroller’s Directive #24.

• Ensure that the imprest fund is used for appropriate expenses in accordance with Comptroller’s Directive #3.

• Maintain complete and accurate inventory records.