Audit Report on the Office Equipment Inventory Practices at the Fourteen Queens Community Boards

Executive Summary

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

New York City is divided into 59 administrative districts, each served by a Community Board, which is a local representative body authorized by the New York City Charter to advocate for the residents and needs of its administrative district.  Community Boards have various responsibilities, which include assessing their neighborhoods’ needs, addressing community concerns, and vetting land use and zoning proposals.  Queens has fourteen Community Boards that collectively cover the entire borough.  Each of the Queens Community Boards has a District Manager and at least one full-time clerical staff person whose salaries are paid by the City of New York.

Audit Findings and Conclusions

Our audit found that ten of the fourteen Queens Community Boards, Boards #2, #3, #4, #5, #6, # 7, #8, #10, #11, and #13, were in compliance with DOI’s Standards for Inventory Control and Management and Comptroller’s Directive #1.  The other four Community Boards failed to fully adhere to these City inventory control standards.  We found all 497 office equipment items listed on the Queens Community Boards inventory records were present at the various Boards’ offices.  We reviewed the Queens Community Boards’ controls over their inventory of office equipment such as desktops, laptops, tablets, monitors, printers, scanners, fax machines and televisions.  We found that during our visits to the Community Boards, we identified 26 items at two Community Boards (Boards #9 and #12) that were not listed on the current inventory lists.  We also found that four of the Boards (Boards #1, #9, #12, and #14) maintained incomplete inventory records and that 39 items at three Boards (Boards #1, #12, and #14) were not labeled in conformance with DOI standards.  Based on the information missing from the inventory lists, we conclude that there is a potential risk of loss, misappropriation or theft at the four Community Boards.

In addition, we found that seven Community Boards (Boards #1, #2, #3, #6, #9, #12 and #14) purchased 51 office equipment items using incorrect object codes on 24 payment vouchers.

Audit Recommendations

The audit made the following four recommendations.  Each Community Board should ensure that:

• Complete and accurate records of all office equipment are maintained in accordance with DOI’s Standards for Inventory Control and Management and Comptroller’s Directive #1;
• The inventory lists are appropriately updated when changes occur, including purchases and change of location;
• Identification tags are affixed to all non-consumable office equipment items and include a sequential internal control number; and
• All office equipment purchases are charged to the correct object code as per Comptroller’s Directive #24, Agency Purchasing Procedures and Controls.

Agency Response

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