Audit Report on the New York City Housing Authority’s Controls over the Installation of Roof Top Fans at NYCHA Buildings
Audit Findings and Conclusion:
The objective of this audit was to determine whether NYCHA had adequate controls over the installation of roof top fans at its buildings.[1]
The auditors found that NYCHA generally maintained adequate controls over the vendors’ installation of the roof top fans . NYCHA monitored the installations and took steps to combat the delays , including the use of emergency contracts to attract qualified vendors ; mobilized its asbestos team to identify the fans throughout the developments where asbestos remediation efforts were needed and took corrective action ; and negotiated with manufacturers to improve lead times and establish direct communication to minimize delays and to reduce the time between manufacturing and shipment .
Moreover, regarding oversight of the installations, the audit found that Construction Project Managers (CPMs) were on site daily to oversee the installation process; regularly communicated the status of the installations to OMAR; and confirmed that the installations were performed and all issues were corrected before payments were rendered to vendors . OMAR also maintained a master roof fan installation tracker to track the number of roof fans installed by building throughout all NYCHA developments.
The audit found that vendors had submitted detailed invoices to OMAR upon completion of work , along with a Statement of Services (SOS) form signed by both the vendor and the CPM who oversaw the work . Auditors reviewed a sample of 54 invoices (totaling $1,336,881 ) from the population of 259 invoices (totaling $9,933,959 ) paid through January 25, 2022, and found NYCHA’s oversight to be generally adequate and that service was provided in accordance with the terms of its contracts .
However, the auditors found that NYCHA should update its written procedures for certifying that work is completed in a satisfactory manner prior to issuing payments . A review of 20 sampled invoices revealed that all associated SOS forms were signed by an inspector ; however, only one was dated . Without requiring a sign-off date, NYCHA has limited assurance that payments are made after staff confirms that the work reflected on the invoices has been satisfactorily completedAuditors’ Comment.
Audit Recommendation
The auditors recommend that NYCHA should update its written guidelines to require that adequate evidence be maintained to certify work is performed prior to payment of invoices. This requires that related documents include the date of the certification .
Agency Response
In its response, NYCHA agreed with the audit’s recommendation, stating that “the NYCHA Team would like to thank the Comptroller’s Office for this audit, the positive evaluation and the recommendation, which will further improve NYCHA’s payment protocols.”
[1] The focus of this audit was on NYCHA’s installation of fans in residential buildings (and not the non-residential/capital installations), by its Office of Mold Assessment and Remediation (OMAR).