Audit Report on the Financial and Operating Practices of the New York City Independent Budget Office

AUDIT REPORT IN BRIEF

The New York City Independent Budget Office (IBO) serves as a publicly funded agency responsible for enhancing official and public understanding of the New York City budget. The IBO’s principal responsibilities include providing nonpartisan budgetary, economic, and policy analysis for elected officials and the residents of the City. The IBO publishes reports and responds to requests for information and analysis related to the City budget.

During Fiscal Year 2008, Other Than Personal Services (OTPS) expenditures amounted to $474,539. This audit determined whether the IBO is complying with certain City purchasing procedures.

Audit Findings and Conclusions

The Independent Budget Office generally adhered to Comptroller’s Directive #6, #11, #24; applicable Procurement Policy Board (PPB) rules; and the Department of Investigation Standards for Inventory Control and Management:

• The amounts paid to vendors were properly calculated and excluded sales tax,
• State and requirement contracts were used when available,
• All major equipment selected for inventory testing was found,
• Property identification tags with a sequential internal control number were assigned and affixed to items valued at more than $250, and
• Serial numbers and tag numbers corresponded to inventory records.

However, there were minor instances in which the IBO did not comply with certain purchasing procedures. The IBO:

• Did not maintain 14 original invoices totaling $1,603.
• Lacked segregation of duties over the imprest fund.
• Incorrectly charged the imprest fund for two staff meetings held outside the office.
• Included imprest fund checks outstanding more than 90 days in the checkbook balance.
• Improperly processed a miscellaneous voucher for the purchase of postage totaling $5,000.

We make five recommendations, that the IBO ensure:

• All reimbursement request forms include original receipts and supporting documentation.
• Individuals authorizing the purchase should not sign the checks. The employee requesting reimbursement should not sign as the pre-audit examiner. The custodian of the imprest fund account should not be assigned any other duties related to the imprest fund.
• Meals outside the office for City employees are not paid for with City funds under any circumstances.
• Checks outstanding more than 90 days are recredited to the checkbook balance to comply with Directive #3 requirements.
• Miscellaneous vouchers are used when appropriate.