Audit Report on the Financial and Operating Practices of the Staten Island Borough President’s Office

This audit determined whether the Staten Island Borough President’s Office (SIBP) complied with certain purchasing procedures as set forth in the Comptroller’s Directives #1, “Financial Integrity Statement;” #3, “Procedures for the Administration of Imprest Funds;” #6, “Travel, Meals, Lodging and Miscellaneous Agency Expenses;” #11, “Cash Accountability and Control;” #24, “Agency Purchasing Procedures and Controls;” applicable Procurement Policy Board (PPB) rules; and the Department of Investigation’s (DOI’s) Standards for Inventory Control and Management.

Audit Findings and Conclusions

With the exception of the issues noted below, we found that the SIBP generally adhered to the requirements of Comptroller’s Directives #3, #6, #11, and #24, applicable PPB rules, and the DOI’s Standards for Inventory Control and Management. In addition, the SIBP other than personal service (OTPS) expenditures disclosed no instances in which monies were improperly used. However, we did note some instances of noncompliance representing internal control weaknesses. Specifically:

• Imprest fund supporting documentation was not stamped “PAID, CHECK #, DATE.”
• Imprest fund reimbursement requests were not submitted promptly.
• A continuing monthly expenditure was incorrectly charged as an imprest fund expense.
• Thirty-three out of 65 purchase request forms were approved after the purchases were incurred.
• The inventory list of computer and electronic equipment was not complete and accurate.
• Four items lacked agency property identification tags.
• Forty-seven relinquished items were included on the inventory list.
• Eighteen Topographical Bureau cash receipts totaling $6,800 were not deposited on a daily basis.

We make seven recommendations, including the following.

• The SIBP should ensure that all imprest fund expenditures comply with the provisions of Directive #3.
• The SIBP should ensure that agency purchase request forms are approved in advance of the purchase by the employee(s) designated by the Agency Head.
• The SIBP should ensure that complete and accurate records of all pieces of equipment are maintained.
• The SIBP should ensure that all cash receipts are deposited in a timely manner.