This quarterly cash report covers October-December 2007, second quarter of fiscal year 2008. Included in this report are cash balances in revenue and expenditures for the quarter. Also included are information and comparative analyses between spendings in this quarter and in previous fiscal periods.
A follow-up audit report was filed on January 31, 2008 on the Department of Homeless Services (DHS) controls over computer equipment. This follow-up audit determined whether DHS implemented the three recommendations made in the previous audit (Audit No. FL03-131A, June 30, 2003). It was determined that of the three recommendations made previously, DHS has implemented two and only partially implemented the third. Major weaknesses still exist in the DHS inventory-management process. Significant delays were detected in updating and maintaining current inventory records in Asset Tracker, as well as inconsisitencies in following inventory management and control procedures over computer equipment. Recommendations were made to rectify these issues.
An audit report was filed on January 30, 2008 on the financial and operating practices of the Department of Parks and Recreation for the West 79th Street Boat Basin. Parks is responsible for managing, operating, and maintaining the Boat Basin in Riverside Park, on the east bank of the Hudson River. It was determined that there was a total disregard for internal controls over the collection, recording, and reporting of revenues generated from all sources. Parks also allowed an environment to exist in which irregularities appear to have occured, and many red flags were raised. Questions were also raised as to whether fraud may have occurred at the Boat Basin. Operations at the Boat Basin were determined to be extremely disorganized and lacking. Recommendations were made to rectify these issues.
An audit report was filed on January 7, 2007 on the financial and operating practices of the Office of Special Narcotics. This audit determined whether the Office of Special Narcotics is complying with certain purchasing and inventory procedures and controls as set forth in the New York City Comptroller's Directives (#3,6, and 24), applicable Procurement Policy Board (PPB) rules, and the Department of Investigation Standards for Inventory Control and Management. It was determined that the Office generally adhered to the Comptroller's Directives and applicable PPB rules, and that no monies were improperly used. However, the Office did not fully comply with certain requirements. Recommendations were made to rectify these issues.
An audit report was filed on January 4, 2008 on the New York Yankees Rental Credits for the Fourth Quarter of 2006, the period from October 1 to December 31, 2006. The Yankees are responsible for the care of City-owned Yankee Stadium, and must pay rental income. However, the lease allows the Yankees to offset against any rental income due the City, costs incurred by the Yankees for maintaining the stadium. Thus every dollar spent and accounted for as a maintenance credit results in a dollar-for-dollar decrease in rent due the City. The audit found that Yankee rental credits submitted for the Fourth Quarter of 2006 were overstated by $157,996.68. It was recommended the Yankees deduct this amount from rental credits taken, and that the Department of Parks and Recreation enforce these protocols.
An audit report was filed on December 28, 2007 containing an analysis of the financial and operating practices of union-administered benefit funds with fiscal years ending in calendar year 2005. The purpose of this report is to provide comparative analysis of the overall financial activities of the 97 union-administered active and retiree welfare, education, and annuity funds that receive City contributions and is based on the analyses of individual funds. It was determined that the expenses of certain funds exceeded their revenues, certain funds spent a large percentage of their revenue on administrative expenses, and certain funds had large operating surpluses resulting in high reserves. Recommendations were made to rectify these issues.