Audit Report on the Payroll, Timekeeping and other than Personal Services Expenditures of the Civil Service Commission

AUDIT REPORT IN BRIEF

This audit determined whether the Civil Service Commission (Commission) is complying with certain payroll, personnel, timekeeping, purchasing, and inventory procedures as set forth in the New York City Comptroller’s Internal Control and Accountability Directives (Comptroller’s Directives) 1, 3, 6, 13, 24, and 25, the City Office of Payroll Administration (OPA) procedures, bulletins, and instructions for its Payroll Management System (PMS), the Citywide Contract between the City of New York and District Council 37, AFSCME, AFL-CIO, Leave Regulations for Employees Who Are Under the Career and Salary Plan; Leave Regulations for Management Employees, Personnel Orders 88/5 and 97/2, the Procurement Policy Board (PPB) Rules, City Financial Management System Accounting Policies and Procedures and Bulletins, Comptroller’s "Fiscal Year End Closing Instructions for June 30, 2003," the Commission’s New Employee handbook 1999-2000, and other applicable guidelines.

The Commission is authorized under Chapter 35, §813, of the New York City Charter to hear and decide appeals for disputes between the City of New York and its employees or applicants for City employment. After an initial review at the departmental level, the Commission, like the court system, may opt to review evidence, examine testimony, or hold hearings about a dispute to make a final, binding determination. The Commission is empowered to employ five Commissioners, consisting of a Chairperson appointed by the Mayor, and four other members (considered as per diem employees). The Commission also employed four full-time employees and four interns.

Audit Findings and Conclusions

The audit found that the Commission generally complied with many City policies and guidelines pertaining to payroll and timekeeping and with its own procedures applicable to timekeeping. In addition, the Commission complied with various PPB Rules and Comptroller’s Directives for processing purchase orders and payment vouchers.

However, there were several minor instances in which the Commission did not follow certain aspects of the Citywide contract, personnel orders regarding workweek requirements, time and leave regulations, PPB Rules, Comptroller’s Year-End Closing Instructions, and Directives 1 and 24. These exceptions included: available requirement contracts not used for two purchases; terms of purchases not fully detailed on four purchase orders; funds improperly encumbered after receipt of goods or services involving nine purchase orders; purchases charged to incorrect object codes for 15 purchase orders; and purchase files lacking certification of the receipt of goods or services for 19 payment vouchers.

Audit Recommendations

The audit made 10 recommendations, including that the Commission ensure that: purchases are made from requirement contracts when they are available; purchase orders include all specifications of the agreement; all funds for purchase orders are encumbered prior to receiving goods or services and paying vendor invoices; and, all documentation to support payments is contained in the voucher and vendor files. The Commission’s response did not address the report’s recommendations. However, the Commission stated that it "will endeavor to avoid the minimal mistakes cited in the report."