Follow-Up Audit Report on the Financial Controls of the Brooklyn Public Library

AUDIT REPORT IN BRIEF

This follow-up audit determined whether the Brooklyn Public Library (Library) implemented the three recommendations made in a previous audit entitled Audit Report on the Financial Controls of the Brooklyn Public Library (MD05-059A), issued June 22, 2005. This audit also determined the Library’s current position on one recommendation that was not implemented in an earlier, 2001, audit, Follow-up Audit on the Financial and Operating Practices of the Brooklyn Public Library, (MD01-071F, issued June 6, 2001). In this report, we discuss the current implementation status of the recommendations made in the prior audits.

The 2005 audit disclosed that in general, Library expenditures funded by City appropriations were valid and accurate. However, this previous audit noted concerns with certain computer equipment inventory practices in the Library’s Finance Department. With regard to these questionable inventory practices, the auditors noted there was no evidence of supervisory review and approval of the computer equipment inventory list, and the computer equipment inventory list contained errors (missing and duplicate items). The auditors also found that none of the sampled computer equipment was tagged to denote Library ownership or was listed in inventory records with its location.

Audit Findings and Conclusions

The current follow-up audit disclosed that the Library implemented the three recommendations made in the June 22, 2005 audit, and did not implement the one recommendation made in the June 6, 2001 audit. The recommendation not implemented concerned the amendment and updating of the 1903 agreement with the City to more clearly define the duties, the obligations, and the responsibilities of each party. In regard to that recommendation, we were informed that the Library “continues to maintain that it is unnecessary to change in any way its existing agreement with New York City.”

During the current audit, we identified new issues concerning certain inventory management practices of computer equipment installed in the Library’s Finance Department. Specifically, the Library assigns only one “asset tag” to an entire system consisting of a central processing unit (CPU), computer monitor, keyboard, and mouse. In addition, there were no records that documented employees’ receipt of computer equipment (laptops) and outlined their responsibilities for safeguarding the equipment during long-term use in their homes.

Audit Recommendations

To address the issue from 2001 audit that still exists, we recommend that:

• The Library and the Office of Management and Budget should ensure that their officials, together with the Mayor’s Office of Operations, seek to amend and update the 1903 agreement with the City. The new agreement should more clearly define each party’s duties, obligations, and responsibilities. In addition, the agreement’s statement of the Comptroller’s audit authority should include full and detailed access to all Library records.

To address the new issues identified in the current audit, we recommend that the Library:

• Affix asset tags to its computer monitors in addition to its CPUs so that at a minimum, the main components of computer systems are tagged as property of the Library. Also, the newly tagged monitors need to be included separately on the Library’s asset listing.
• Develop and use a form for documenting employees’ receipt of computer equipment (laptops) and their responsibilities for safeguarding the equipment during long-term use by employees in their homes.