Audit Report on the Procurement Practices of the Office of Collective Bargaining

AUDIT REPORT IN BRIEF

This audit determined whether the Office of Collective Bargaining’s (OCB’s) procurement practices complied with applicable Procurement Policy Board (PPB) rules, Comptroller’s Directives, and its own procedures. The scope period of this audit was Fiscal Year 2007 (July 1, 2006 to June 30, 2007).

OCB was created in 1967 to administer and enforce the provisions of the New York City Collective Bargaining Law. OCB was established to resolve disputes between City labor and management. In Fiscal Year 2007, the Office of Collective Bargaining expended $1.8 million, of which $527,933 was for Other Than Personal Services (OTPS).

Audit Findings and Conclusions

OCB’s procurement practices generally complied with applicable procurement guidelines, including PPB rules, Comptroller’s Directives, and its own procedures. Specifically, for our sampled payments, we determined that items purchased were necessary for OCB’s office operation; purchase documents were appropriately prepared and approved; vouchers had sufficient documentation to support payment and expenditures were charged to the correct budget and object codes. In addition, imprest fund expenditures did not exceed $250 and included a specific payee; miscellaneous vouchers were used appropriately; and computations on vouchers were accurate. Furthermore, there was an adequate segregation of responsibilities in the procurement process; there were no instances of split purchasing to avoid purchasing rules; and OCB had adequate controls over its inventory of computer and electronic equipment.

However, there were some minor findings in our sample of general purchase payment vouchers and in the computer and electronic equipment inventory. Three invoices were not stamped “Vouchered” or “Paid”; one purchase document did not have an approval stamp; one payment should have been charged to another fiscal year; and one computer monitor was not on the inventory lists.

Audit Recommendations

Since we found no material weakness in OCB’s procurement practices, we make no recommendations in this report.

Agency Response

In their response, OCB officials acknowledged and accepted the audit’s findings.