Audit Report on the Personnel Payroll and Timekeeping Practices of the New York City Law Department

AUDIT REPORT IN BRIEF

This audit of the New York City Law Department (Department) evaluated the agency’s internal controls over its personnel, payroll, and timekeeping practices, and its compliance with applicable City rules and regulations. The Department is the attorney for the City, for City agencies, and for certain non-City agencies and pension boards. It is in charge of litigation and other legal matters involving the City and its interests. During Fiscal Year 2003, its budget was $102 million, consisting of $74 million for Personal Services (PS) and $28 million for Other Than Personal Services (OTPS) expenditures. PS expenditures covered the salaries of 1,331 employees. Employees are assigned to 33 Department divisions in nine offices throughout the City and one in Kingston , New York .

Audit Findings and Conclusions

We determined that the Department generally complies with applicable personnel, payroll, and timekeeping practices established by the agency, those set forth in Comptroller’s Internal Control and Accountability Directives 1 and 13, and those in City employment and leave regulations. However, we identified some weaknesses in Department timekeeping and payroll practices that did not affect our overall opinion but that should be addressed. They include: a failure to monitor excess annual leave balances; inadequate tracking of undocumented absences; and a payroll process that is not internally audited. In addition, we noted access and maintenance issues regarding its hand-scanning computer system.

Audit Recommendations

To address these issues, we made five recommendations to the Department. It should:

• Monitor excess leave balances for all employees.

• Track undocumented absences.

• Independently audit its payroll process.

• Deactivate inactive user accounts on its hand scanning computer system.

• Maintain logs and reports for its hand-scanning computer system.

Department Response

he matters covered in this report were discussed with Department officials during and at the conclusion of this audit. A preliminary draft report was sent to Department officials on April 12, 2005, and was discussed at an exit conference on April 21, 2005. On May 3, 2005, we submitted a draft report to Department officials with a request for comments. We received a written response from Department officials on May 18, 2005. In their response, Department officials agreed with all five recommendations made in this report.