Audit Report on the Financial and Operating Practices of the Snug Harbor Cultural Center and Botanical Garden

The objective of this audit was to determine whether the Center expended City funds in compliance with Department of Cultural Affairs (DCLA) requirements, Comptroller’s Directives, and its own internal procedures, and whether it had adequate and effective internal controls over its financial and operational processes.

Summary of Findings

The audit found that the Center appropriately expended City funds during the audit scope period. However, it found weaknesses in its operating processes that may increase the risk of fraud or misappropriation of City funds.

Recommendations

To address these findings, the audit recommends that the Center maintain Annual Potential Conflicts Disclosures for all Board members and the Board resolve known conflicts of interest; maintain complete and accurate inventory records; implement all required safety measures; and ensure that all required reports are complete, accurate, and issued in accordance with DCLA Procedures.

Agency Response

In its response, the Center agreed with six of the seven recommendations and stated that it already complied with the remaining recommendation.