Audit Report on the Financial and Operating Practices of the Three Staten Island Community Boards

This audit determined whether Staten Island Community Boards 1, 2, and 3 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 (DOI) Standards for Inventory Control and Management.

Audit Findings and Conclusions

With the exception of the issues noted below, we found that the Boards generally adhered to the requirements of Comptroller’s Directives #3, #6, #11, and #24, applicable PPB rules, and the DOI Standards for Inventory Control and Management. In addition, the Boards OTPS expenditures disclosed no instances in which monies were improperly used. However, the Boards did not always comply with certain aspects of Comptroller’s Directives #3, #6, #11, and #24, and the DOI Standards for Inventory Control and Management. Specifically:

• Files for imprest fund expenses did not always contain purchase requisitions.
• Continuing monthly expenditures were inappropriately charged as imprest fund expenses.
• Four purchases were split to circumvent the $250 expenditure limitation.
• Seven imprest fund checks did not have the inscription “void after 90 days,” and four imprest fund checks were signed by the custodian of the account who is not authorized to sign checks.
• Board 2 did not reconcile the imprest fund account on a monthly basis.
• Three purchases totaling $2,162, for Board 2, were improperly processed using miscellaneous vouchers.
• Board 2 made eight purchases of office furniture using incorrect purchase documents.
• Board 1 did not have sufficient documentation to support 10 rental payments, totaling $1,000, that it made to a local church for space to conduct its monthly Board meetings.
• Boards 2 and 3 inventory lists of computer and electronic equipment were not complete and accurate.
• Boards 1 and 2 did not maintain written policies and procedures for inventory control.

We make ten recommendations, including the following.

• The Boards should ensure that all imprest fund expenditures comply with the provisions of Directive #3.
• Board 2 should ensure that appropriate purchasing documents are used for vendors that have a requirements contract and comply with the provisions of Directive #24.
• Board 1 should ensure that sufficient supporting documentation is maintained and comply with the provisions of Directive #24.
• Boards 2 and 3 should ensure that complete and accurate records of all pieces of equipment are maintained.
• Boards 1 and 2 should establish written policies and procedures for their inventory controls over equipment.