Audit Report on the Financial and Operating Practices of the New York City Commission on Human Rights

AUDIT REPORT IN BRIEF

The New York City Commission on Human Rights (CCHR) is a Charter-mandated agency. It is responsible for enforcing the New York City Human Rights Law, one of the most comprehensive civil rights laws in the nation. CCHR maintains a Community Service Center in each borough, which addresses discrimination complaints and implants educational and enforcement programs that target accessibility, fair housing, employment, and immigrant issues.

This audit determined whether CCHR is complying with certain City purchasing and inventory procedures. During Fiscal Year 2007, Other Than Personal Service (OTPS) expenditures for the New York City Commission on Human Rights amounted to $1,849,980.

Audit Findings and Conclusions

CCHR generally adhered to Comptroller’s Directives #3, #6, and #24; applicable Procurement Policy Board rules; and the Department of Investigation Standards for Inventory Control and Management. However, there were minor instances in which CCHR did not comply with certain purchasing and inventory procedures. CCHR:

• lacked bidding documentation for two contracts totaling $23,604;

• charged the incorrect object code for 3 of the 67 purchase vouchers tested, totaling $42,442, and 1 of the 5 miscellaneous vouchers tested, totaling $1,369;

• improperly spent $386 from its imprest fund account for a retirement party for one of its employees;

• issued a $572 electronic fund transfer payment to United Parcel Service for delivery services through its imprest fund account, which exceeded the $250 limit;

• does not have its imprest fund checks imprinted with the restrictive endorsement statement, “void after 90 days”;

• did not hand stamp “PAID $ CHECK # DATE” on seven invoices and receipts attached to the imprest fund vouchers; and

• did not maintain complete and accurate inventory records.

Audit Recommendations

We make the following 10 recommendations to CCHR. CCHR should ensure that:

• Documentation of bidding is maintained on file.

• Justification for use of sole-source vendors is in accordance with the PPB rules.

• All payments are charged to the correct object code.

• City funds are not used for retirement luncheons.

• Imprest fund purchases do not exceed $250.

• Imprest fund checks are imprinted with the restrictive endorsement statement “void after 90 days.”

• All invoices and receipts are hand stamped with the information “PAID $ CHECK # DATE.”

• Identification tags are affixed to all items.

• Tag numbers are included for each item listed on the inventory list.

• Complete and accurate records of all equipment are maintained.