Audit Report on the Manhattan Borough President’s Office’s Cash Controls over Minor Sales

Borough Presidents are the executive officials of each of the five boroughs, elected by the people of their borough for a term of four years. It is a Borough President’s responsibility to prepare and review budget proposals; recommend capital projects; hold public hearings on matters of public interest; consult with the Mayor and the City Council on the preparation of the executive and capital budgets; review and recommend applications and proposals for the use, development, or improvement of land in the borough; prepare environmental analyses required by law; provide technical assistance to the borough’s community boards; monitor and make recommendations regarding the performance of contractual services in the borough; and propose legislation to be introduced in the City Council. Minor sales are generated by the Topographical Unit, which collects fees for assigning new or alternative addresses and copies of maps. The Manhattan Borough President’s Office (MBPO) collected $137,610 in minor sales during Fiscal Year 2011.

Results

The audit found that the MBPO complied with most aspects of Comptroller’s Office Directive #11, Cash Accountability and Control, but not all. We found that there was an adequate segregation of duties with the various cash handling processes, all checks received were made payable to the MBPO, a rubber stamp endorsement was placed on the back of all checks, and copies of bank deposit slips and customer receipts were maintained. However, the audit also identified three requirements of Directive #11 that MBPO did not comply with. Specifically, the MBPO did not: deposit cash collected daily; issue pre-numbered receipts; and store daily cash receipts in the agency safe when a deposit was not made for the day.

Audit Recommendations

To address these issues, the audit made three recommendations. The MBPO should:

• Deposit cash receipts daily.
• Use pre-numbered receipts for fees collected.
• Store cash receipts held overnight in the agency safe.

MBPO officials agreed with the audit’s findings and recommendations and stated that a memorandum will be distributed to all staff informing them of the changes that are being implemented in the agency’s minor cash sales procedures pursuant to the audit.