This Office of the Comptroller report focuses on the current economic climate and addresses the preliminary budget for fiscal year 2010 and the financial plan for fiscal years 2009 to 2013. Addressed in this report are the actions that have been taken and are being taken to reduce costs to the City and to improve its use of resources. Included are data and analyses for revenue and expenditures in past fiscal years, and projections for the future financial plan.
An audit report was filed on February 26, 2009 on the compliance of Sweet Concessions with its Department of Parks and Recreation Contract. Sweet Concessions manages, operates, and maintains two snack bars near the model boat pond in Central Park (off Fifth Avenue between 73rd and 74th Streets), under a contract with the Department of Parks and Recreation (Parks). It was determined that Sweet Concessions generally paid its minimum annual fees on time, performed capital improvements, maintained required security deposit and liability insurance, paid utility charges, and returned equipment to Parks upon the expiration of its agreement. However, Sweet Concessions had significant internal control weaknesses over the collecting, recording, and reporting of revenues. Recommendations were made to rectify these issues.
From an audit conducted on the Jerome-Gun Hill Business Improvement District (BID), it was found that the BID has adequate internal controls over its funds, provided services called for in its District Plan, and complied with its contract with the Department of Small Business Services (DSBS). However, the BID lacks adequate oversight of contracts and a proper number of members on its Board of Directors. Recommendations have been made to address these issues and others.
An audit report was filed on February 24, 2009 on Department of Transportation efforts to address sidewalk defect complaints. The audit assessed the adequacy of Department of Transportation's (DOT) efforts to address non-emergency sidewalk defect complaints. It was determined that DOT's efforts to address complaints could be improved. Weaknesses were identified that affected the Sidewalk Management Unit's operational effectiveness and efficiency in assuring that defective sidewalk conditions are identified and appropriately addressed. Recommendations were made to rectify these issues.
From an audit conducted on the Department of Environmental Protection (DEP), it was found that the DEP has adequate controls over the billing of water and sewer charges of residential properties. However, there is a risk that the DEP is not billing certain properties due to poor monitoring, leading to an excess amount of bills not being paid. Recommendations have been made to address this and other issues.
From an audit conducted on the New York Yankees, it was found that the Yankees overstated its rental income to the City. The Yankees charged an excess of expenses to the City, violating the lease agreement they made with the Department of Parks and Recreation. In addition, certain expenses lack sufficient documentation and it is unreliable to charge them to the City. Recommendations have been made to address these issues.
From an audit conducted on the reliability of the data in the Office of the Assigned Counsel Plan (ACP) computer systems, it was found that the 18-B Web system has adequate controls over the assignment and scheduling of attorneys, while the FoxPro system has inadequate controls over the payments of cases. The 18-B Web system was designed to identify cases suspected of overbilling and double-billing, and there are instances of incorrect data and blank data fields. The FoxPro system was designed to process case vouchers and it lacks detailed information. Recommendations have been made to address these issues.
From an audit conducted on the collection processes of fines imposed by the Environmental Control Board (ECB), it was found that these processes are inadequate. The ECB does not forward cases to the Department of Finance (DOF) in a timely manner, hindering the DOF's collection efforts. In addition, the DOF does not have standardized procedures for collection and lacks adequate organization. Recommendations have been made to address these issues.