Audit Report On The Financial Controls Of The Brooklyn Public Library

This audit determined whether the Brooklyn Public Library (Library) expenditures funded by City appropriations were valid and accurate.

Audit Findings and Conclusions

In general, Library expenditures funded by City appropriations were valid and accurate. Specifically,

• Other Than Personal Services (OTPS) expenditures were documented, reasonable, and necessary for Library operations.
• Purchase orders had proper approvals, and vendor invoices were on file to substantiate the amounts paid.
• Compensation was paid to bona-fide employees.

However, our review disclosed concerns with certain computer equipment inventory practices.

In addition, as part of this audit we reviewed the implementation status of recommendations made in an earlier audit issued by our office, Follow-up Audit on the Financial and Operating Practices of the Brooklyn Public Library, issued June 6, 2001. The follow-up audit disclosed that the Library did not work with the City’s Office of Management and Budget (OMB) to develop a written cost-allocation plan that specifies expenses to be paid with City appropriations and that requires an explanation of any deviation from the cost allocation plan. The Library and OMB also did not take steps to update the agreement between the City and the Library. Finally, OMB did not conduct an annual review of the Library’s book-fine revenues. Of the five recommendations in the earlier audit, four were implemented and one was not implemented.

Based on our findings on the Library’s computer equipment inventory practices, we make three recommendations:

Library officials should ensure that:

1. The physical computer equipment inventory list is adequately reviewed and approved by a supervisor.
2. Discrepancies cited in this report are investigated and that the Finance Department’s computer equipment inventory list is corrected and updated accordingly.
3. Asset tags are assigned to computer equipment inventory to denote Library ownership and location, and ensure that this information is recorded in the physical computer equipment inventory list.