Audit Report on the Office of Collective Bargaining’s Controls over Its Inventory of Computers and Related Equipment
May 29, 2018 | MH18_068A
We conducted this audit to determine whether the New York City (City) Office of Collective Bargaining (OCB) maintains adequate controls over its inventory of computers and related equipment.
OCB is an independent, non-mayoral agency established in 1967 to administer and enforce the provisions of the New York City Collective Bargaining Law. OCB is authorized by the City Charter to resolve questions concerning union representation and to adjudicate issues concerning collective bargaining, retaliation, or discrimination based on union activity and the union’s duty of fair representation.
OCB maintains an inventory list of the agency’s computers and related equipment in a Microsoft Excel file. Computers and related equipment purchased by OCB, such as desktops, laptops, monitors, tablets, projectors, printers, and smart TVs, are identified in the City’s Financial Management System (FMS) under object code 332 (Purchases of Data Processing Equipment). For Fiscal Years 2016 and 2017, OCB’s expenditures for computers and related items was $82,545.
Audit Findings and Conclusion
This audit found deficiencies in OCB’s controls over its inventory of computers and related equipment. OCB’s inventory records were not consistently accurate in that its inventory list included equipment that was no longer in the agency’s possession, excluded equipment that was in the agency’s possession at the time of our count, recorded several items more than once, and recorded incorrect serial numbers and tag numbers for some of the equipment. Further, although OCB informed us that it conducts inventory counts at least once each year, the agency did not maintain any supporting documentation, such as “count sheets,” and consequently we could not verify that such counts were conducted. We also found that not all tag numbers were accounted for, which diminishes their effectiveness as a control mechanism.
At the same time, the audit found that OCB has adequate controls relating to physically safeguarding the computers and related equipment in its inventory. All entrances and exits to the office are under constant camera surveillance, and staff areas are only accessible via authorized key cards. OCB also has automated asset tracking systems that enable the agency to track items’ locations and identify them using their serial numbers. The audit also found that OCB had adequate controls over the relinquishment of obsolete items.
Based on our findings, we make six recommendations, including the following:
- OCB should adhere to the DOI Standards and ensure that its computers and related inventory records are complete and consistently accurate.
- OCB should perform and document an annual inventory count of its entire inventory of computers and related equipment in accordance with the DOI Standards.
- OCB should ensure that it issues its identification tags in sequential order, one roll at a time, when tagging its computers and related equipment.
OCB agreed with and stated that they implemented all six of the audit’s recommendations.