Audit Report On The Financial And Operating Practices Of The New York City Tax Commission

AUDIT REPORT IN BRIEF

This audit determined whether the New York City Tax Commission (Tax Commission) is complying with certain purchasing and inventory procedures as set forth in the New York City Comptroller’s Internal Control and Accountability Directives (Comptroller’s Directives) #6 and #24; applicable Procurement Policy Board (PPB) rules; and the Department of Investigation (DOI) Standards for Inventory Control and Management.

Audit Findings and Conclusions

The Tax Commission generally adhered to Comptroller’s Directives #6 and #24; applicable Procurement Policy Board rules; and the DOI Standards for Inventory Control and Management. In addition, our examination of the Tax Commission’s Other Than Personal Service expenditures disclosed no instances in which moneys were improperly used. However, the Tax Commission did not fully comply with the certain purchasing and inventory procedures. Specifically the Tax Commission:

• Charged the incorrect object code for 25 vouchers, totaling $1,304, of the 170 vouchers issued during Fiscal Year 2006;
• Did not always properly complete the personal expense reimbursement forms. Ten out of 34 personal expense forms, totaling $825.11, did not detail the particulars of the expenditures. Specifically, the personal expense forms did not always list the travel locations, total miles traveled, and City vehicle identification number;
• Lacked supporting documentation for four purchases, totaling $163.75, made by employees and submitted for reimbursement; and
• Did not maintain complete and accurate inventory records.

Audit Recommendations

We make the following five recommendations. The Tax Commission should ensure that:

• All payments are charged to the correct object code.
• Employees include the travel itinerary and total miles traveled between each destination when using a personal vehicle for City business.
• Employees include the vehicle identification number when using a City-owned vehicle.
• All payment vouchers are accompanied by appropriate invoices or receipts.
• Complete and accurate records of all equipment items are maintained.