Audit Report on the St. Christopher-Ottilie’s Contract with Department of Youth and Community Development
EXECUTIVE SUMMARY
On September 13, 2000, the Department of Youth and Community Development (DYCD) entered into a three-year contract with St. Christopher-Ottilie Services (St. Christopher), to operate a group residence for runaway or homeless youths aged 16 through 21. The group residence is in the Williamsburg section of Brooklyn. The initial term of the contract is May 9, 2000, to April 30, 2003, with an additional three-year renewal option. For our audit period—July 1, 2000, to June 30, 2001—St. Christopher received $654,543 from DYCD to operate the shelter and provide such services as food, shelter, substance abuse counseling, education, and vocational training.
This audit determined whether St. Christopher maintained adequate internal controls over the receipt and expenditures of contract funds, and spent all contract funds on program-related expenses. We verified whether all revenue received from DYCD was properly recorded on St. Christopher’s books and records. We reviewed payroll and personnel records, original invoices, payment vouchers, canceled checks, and supporting documentation to determine whether St. Christopher charged only program-related expenses to the DYCD contract.
St. Christopher generally adhered to the provisions of its agreement with DYCD and had an adequate system of internal controls over the recording and reporting of its revenues and expenses. All revenue received from DYCD was properly recorded on St. Christopher’s books and records and deposited in St. Christopher’s bank account. All expenses were reasonable and appropriate, and were adequately documented.
However, St. Christopher did not always follow DYCD guidelines when processing petty cash disbursements. In addition, St. Christopher could not account for a digital camera and a vacuum cleaner purchased with contract funds. It would cost St. Christopher $554 to replace these items.
This report recommends that St. Christopher make sure that all petty cash payments are processed in accordance with DYCD’s Fiscal Manual, and that all equipment purchased is properly safeguarded and accounted for. This report also recommends that DYCD make sure that St. Christopher implements the audit recommendations.
The matters covered in this report were discussed with St. Christopher and DYCD officials during and at the conclusion of this audit. A preliminary draft report was sent to St. Christopher and DYCD officials on May 1, 2002, and discussed at an exit conference on May 22, 2002. On May 29, 2002, we submitted a draft report to St. Christopher and DYCD officials with a request for comments. In their responses, St. Christopher and DYCD agreed to implement the report’s recommendations. However, St. Christopher did not believe that the digital camera the report cited as missing was, in fact, missing. Nevertheless, St. Christopher acknowledged that any equipment purchased with program funds is the property of DYCD and must be properly safeguarded.