Audit Report on the Financial and Operating Practices of the Jamaica Center Mall Special Assessment District

AUDIT REPORT IN BRIEF

This audit of the Jamaica Center Mall Special Assessment District (SAD) covered the organization’s provision of services, compliance with its City contract, and adequacy of internal controls over funds and operations. The Jamaica Center Mall SAD was created under State law in 1978. It is funded by special assessments levied against district property owners. Assessments are collected by the City and returned to the SAD. These moneys are used to enhance and promote the district by purchasing services and improvements supplemental to services already provided by the City. The City Department of Small Business Services (DBS) supervises and oversees the Jamaica Center Mall SAD.

The Jamaica Center Mall SAD provides most of the supplemental services and special events proposed in its District Plan. The SAD maintains complete and accurate financial records, submits annual reports to DBS, and has its annual financial statements certified by an independent certified public accountant, as required by its contract with DBS. However, the SAD was unaware of a missing payment from DBS, had uninsured deposits, did not adequately safeguard assets, and lacked dual signatures on checks. Also, the SAD does not conduct frequent surveys of member satisfaction.

To address these issues, we make seven recommendations, including recommendations that the Jamaica Center Mall SAD:

• Enroll in the Electronic Funds Transfer program offered by DBS.
• Place its deposits exceeding $100,000 in collateralized accounts.
• Conduct more frequent (e.g., annual) surveys of member satisfaction.
• Consider providing supplemental security services.

The Jamaica Center Mall SAD agreed with the audit’s recommendations and indicated that it will take steps to implement them.