Audit Report On The Queens Borough President’s Office’s Cash Controls Over Minor Sales

LETTER REPORT IN BRIEF

Borough Presidents are the executive officials of each of the five boroughs, elected by the people of their borough for a term of four years.  It is a Borough President’s responsibility to prepare and review budget proposals; recommend capital projects; hold public hearings on matters of public interest; consult with the Mayor and the City Council on the preparation of the executive and capital budgets; review and recommend applications and proposals for the use, development, or improvement of land in the borough; prepare environmental analyses required by law; provide technical assistance to the borough’s community boards; monitor and make recommendations regarding the performance of contractual services in the borough; and propose legislation to be introduced in the City Council. Minor sales are generated by the Topographical Unit, which collects fees for assigning new or alternative addresses and copies of maps. The Queens Borough President’s Office (QBPO) collected $231,535 in minor sales during Fiscal Year 2011.

Results

The audit found that the QBPO complied with Directive #11 cash control procedures, except for the timely deposit of cash receipts.  We found that there was adequate segregation of duties with the various cash handling processes, the cash receipt amounts agreed with the amounts deposited into the corresponding bank accounts, the deposits were entered in to the City’s Financial Management System, all checks received were made payable to the QBPO, a rubber stamp endorsement was placed on the back of all checks, copies of bank deposit slips and customer receipts were maintained, customer receipts were pre-numbered, and the daily cash receipts were stored in the agency safe when the deposits could not be made. 

However, the audit did find that proceeds from topographical sales were not deposited in a timely manner as required by Comptroller’s Directive #11. All cash receipts (checks and money orders) collected for the month of March 2011were deposited from three to 15 days after received. Regarding cash deposits, Comptroller’s Directive #11 states “generally, all funds received must be deposited in the bank on at least a daily basis.”

Audit Recommendation

QBPO officials should ensure that funds collected are deposited on the same business day they are collected.

QBPO officials agreed with the audit’s findings and recommendations and stated that, “This office has fully complied with the policy requiring all funds received must be deposited in the bank on at least a daily basis.”