Audit Report on the Staten Island Borough President’s Office’s Cash Controls over Receipts from Minor Sales

EXECUTIVE SUMMARY

This audit determined whether the Staten Island Borough President’s Office (SIBPO) is in compliance with Comptroller’s Directive #11, Cash Accountability and Control.

The SIPO has a Topographical Unit that, for a fee, supplies the public with street maps, and issues new or alternative street addresses.The SIBPO accepts certified checks and money orders as payment for the fees it charges for issuing street addresses.

According to the City’s Financial Management System, the SIBPO deposited a total of $67,900 in revenue generated from sales made by the Topographical Unit during Fiscal Year 2014.

Results

The audit found that the SIBPO generally complied with the cash control procedures set forth in Comptroller’s Directive #11 for its Topographical Unit sales. Our review found that the SIBPO adequately segregated duties with the various cash handling processes.The SIBPO ensured that the cash receipt amounts agreed with the amounts deposited in bank accounts and deposits were entered in to the City’s Financial Management System. All checks received were made payable to the SIBPO and a rubber stamp endorsement was placed on the back of all checks. The SIBPO also maintained copies of bank deposit slips as well as pre-numbered customer receipts. The daily cash receipts were stored in the agency safe when the deposits could not be made. Additionally, the SIBPO does not accept cash, personal check or company checks as payment, a practice strongly recommended by Directive #11.

However, the audit found that the SIBPO did not deposit proceeds from the Topographical Unit’s sales into the City’s Treasury daily as required by Comptroller’s Directive #11, §3.4 which states, “The inordinate accumulation of in-office cash receipts is not acceptable and, generally, all funds received must be deposited in the bank on at least a daily basis.” The SIBPO’s current procedure is to accumulate customer payments and deposit the receipts weekly, on Friday, rather than on a daily basis. As a result, the entire week’s collections are held in a safe before being deposited. The weekly deposit ranged from a low of $200 to a high of $4,200 for the period of July 1, 2013 through June 30, 2014.

In his response, the Staten Island Borough President agreed with the report’s finding and recommendation and described “steps already taken by my office to address the recommendation regarding the deposit of Topographical Fees.”