Audit Report On The Financial And Operating Practices Of The Manhattan Borough President’s Office

AUDIT REPORT IN BRIEF

This audit determined whether the Manhattan Borough President’s Office (MBPO) is complying with applicable payroll, personnel, and purchasing procedures.

During Fiscal Year 2006, Personal Services (PS) expenditures for the MBPO amounted to $3,422,091; Other Than Personal Services (OTPS) expenditures amounted to $896,125. The current Manhattan Borough President took office effective January 1, 2006. His administration processed a total of $432,389 in OTPS expenditures between January 1, 2006, and July 30, 2006 (using Fiscal Year 2006 funds). The MBPO employed 68 persons from January 1, 2006, through June 30, 2006.

Audit Findings and Conclusions

Our examination of the MBPO’s PS and OTPS expenditures disclosed no instances in which monies were improperly used. The MBPO generally complied with Comptroller’s Directives #3, #6, #13, and #14. Specifically, the MBPO ensured that employees signed the required Form 319 when picking up their paychecks; reconciled and certified the accuracy of its employees’ payroll; ensured that all employees were bona fide; accurately paid employees upon separation from City service; ensured that purchases were generally supported and the amounts paid to vendors were accurately calculated; and complied with Comptroller’s Directive #3 regarding imprest fund purchases.

However, we found minor areas of deficiency regarding general compliance with City Time and Leave Regulations, Comptroller’s Directive #24, and PPB Rules. The minor findings included: lack of monitoring of employees’ excess annual leave balances, compensatory time balances not used within 120 days from being earned, and undocumented sick leave use; correct purchasing documents not always used; requisite approvals not always obtained before purchases were made; improper use of miscellaneous vouchers; and bidding not always performed when required.

Audit Recommendations

Based on our findings, we make 13 recommendations, six of which are listed below. MBPO officials should:

• Convert excess annual leave to sick leave by May 1 of each year unless it authorizes the carry-over, in writing, in accordance with City Time and Leave Regulations.

• Ensure that employees use compensatory time within 120 days after it is earned; if it is not used, the MBPO should convert and incorporate compensatory time into the employees’ sick leave balances unless it authorizes the carry-over, in writing, in accordance with City Time and Leave Regulations.

• Require employees to provide medical documentation when they exceed the allowable number of undocumented sick leave days.

• Ensure that it complies with Comptroller’s Directive #24 and uses the appropriate Purchasing Documents for its purchases.

• Ensure that it uses miscellaneous payment vouchers for only allowable purposes as described in Comptroller’s Directive #24.

• Ensure that bids are obtained for purchases over $5,000, in accordance with PPB Rules and that all required documentation is maintained in the procurement files.

Agency Response