Follow-up Audit Report on the Computer Equipment Installed at the Human Resources Administration

SUMMARY OF FOLLOW-UP FINDINGS

This is a follow-up audit to determine whether the Human Resources Administration (HRA) implemented the five recommendations made in a previous audit, Audit Report of Computer Equipment Installed at the Human Resources Administration (Audit No.7A01-101, issued June 29, 2001). The earlier audit, which evaluated the adequacy of HRA inventory procedures for installed computer equipment, identified deficiencies in computer equipment inventory control, and noted that approximately $2.5 million in equipment was missing. In the current audit, we discuss the recommendations we made earlier, as well as the implementation status of those recommendations.

In the previous audit, we made five recommendations to HRA, of which four have not been implemented and one is no longer applicable. The details of these recommendations and their current implementation status follow.

1. "Create an inventory project team, reporting to the Commissioner, whose ultimate goal would be to ensure that the inventory control system for installed computer equipment is: (1) accurate; (2) timely; and (3) encompassing."
2. "Refer all significant and unresolved discrepancies to DOI [Department of Investigation] for further investigation, if HRA has not done so."
3. "Immediately assign more data entry personnel to enter the results of the physical inventory count."
4. "Include all Sun Microsystems equipment on the inventory database."
5. "Follow the existing procedures to ensure that all equipment records are accurately recorded."

To address the issues that still exist, we recommend that HRA:

1. Reassign the inventory project team to report to the Commissioner.
2. Ensure that the project team develops an inventory control system for installed computer equipment that is: (1) accurate (i.e., all installed computer equipment is accounted for); (2) timely (i.e., records are adjusted to immediately reflect receipts, transfers and relinquishments); and (3) encompassing (i.e., the system tracks all items that are supposed to be tracked).
3. Refer any unresolved discrepancies to DOI for further investigation.
4. Include all Sun Microsystems equipment in the inventory database.
5. Record equipment information in the database accurately and completely.

This audit was conducted in accordance with generally accepted government auditing standards (GAGAS) and included tests of the records and other auditing procedures considered necessary. This audit was performed in accordance with the City Comptroller’s audit responsibilities as set forth in Chapter 5, § 93, of the New York City Charter.