Audit Report On The Inventory Practices Over Office Equipment At The Twelve Manhattan Community Boards

Executive Summary

We audited the 12 Manhattan Community Boards to determine whether they each comply with certain inventory procedures applicable to office equipment that are set forth in the  Department of Investigation’s Standards for Inventory Control and Management (the DOI Standards).  We further audited the 12 Community Boards to determine whether they maintain effective internal controls over equipment as required by Comptroller’s Directive #1.

New York City encompasses 59 community districts, each served by a Community Board, a local representative body authorized by the New York City Charter to advocate for the residents and needs of its district.  Community Boards have various responsibilities, which include assessing the neighborhoods’ needs, addressing community concerns, and vetting land use and zoning proposals.  Manhattan has 12 Community Boards, numbered 1 through 12, that collectively serve the entire borough. Each of the Manhattan Boards has a District Manager and at least one full-time clerical staff person.

Audit Findings and Conclusions

The audit found that all 12 Manhattan Community Boards were generally in compliance with the DOI Standards and Comptroller’s Directive #1.  Overall, with one exception, the Community Boards maintained complete and accurate inventory records of their office equipment.  We found that 588 of the 591 office equipment items listed on the Manhattan Community Boards’ inventory records were present at each of the Community Boards’ offices and were properly tagged with an agency tag number and identified as “Property of the City of New York.”  All of the office equipment items we saw at the Community Boards’ offices were listed on the inventory lists.  However, at one Community Board (Board #11), we identified 3 of 80 office equipment items that were listed on the inventory list but could not be located during our on-site testing.  As a result, we concluded that there is potential risk of loss, misappropriation, or theft at Community Board #11.

In addition, we found that six Community Boards (Boards #3, #5, #7, #8, #9, and #11) used incorrect object codes to categorize the expenses vouchered for 22 office equipment items purchased during our audit period.

Audit Recommendations

Community Boards #1 through #10 and #12 should continue to ensure, and Community Board #11 should take steps to ensure that:

• Complete and accurate records of all office equipment are maintained in accordance with the DOI Standards and Comptroller’s Directive #1.
• An annual inventory count is conducted in a manner that results in all equipment being listed as well as the location of the items; the Boards should ensure that the inventory count be properly supervised.
• The inventory lists are appropriately updated when changes occur including change of location and properly record the relinquishment of nonworking items and removing those relinquished items from the inventory list.
• Any items removed from the office by current employees or officials are properly documented as “out of the office,” assigned to a specific location and person, and that they are promptly returned. The three items reported to be out of the Community Board #11 office should be promptly accounted for and returned to the Board’s office for inspection.
• All office equipment purchases are charged to the correct object code in accordance with Comptroller’s Directive #24, Agency Purchasing Procedures and Controls.
• Efforts are made to ensure that equipment located at a former employee’s home is promptly returned, including, but not limited to referral to appropriate authorities if the equipment is not promptly returned.

Agency Responses

The 12 Community Boards agreed with the report’s findings and recommendations and described the steps they have taken or will take to implement the report’s recommendations.