An audit report was filed on November 19, 2012 on the Department of Environmental Protection's (DEP) recoupment of change order costs for the Bower Bay water pollution control plant upgrade. It was determined that the Department did not adhere to procedures for recouping the cost of change order work that was categorized as a design error or design ommission. It was also found that the Department improperly categorized certain change orders. Recommendations were made to tighten internal controls regarding change orders.
This letter report dated on November 19, 2012 addresses Teck Gourmet Five, LLC's compliance with its sublicense agreement to operate and maintain a restaurant and catering facility at Douglaston Golf Course. It was determined that while Teck is operating a catering facility, it is not operating a restaurant as required by the agreement. In addition, Teck's internal controls over the recording of special event revenue need to be enhanced. It was recommended that the Department of Parks and Recreation and Douglaston Golf require Teck to adhere to its contract and strengthen its internal controls.
An audit report was filed on November 15, 2012 on Carnegie Hall Corporation's compliance with its City lease agreement. It was determined that the Corporation did not report $8,919,430 in Gross Commercial Rents of which percentage rent and itnerest totaling $363, 521 for fiscal year 2010 is due the City. There was also an issue with the subtenant, CHTL, for deductions in expenses. It was also found that DCAS did not adequately administer the lease to ensure that all the deductions from Gross Commercial Rents were properly reviewed and authorized by the City and that all revenue was properly collected and recorded to the City on time. Recommendations were made to tighten its operations and give in its payments.
An audit report was filed on October 19, 2012 on the Department of Housing Preservation and Development's (HPD) administration of its family self-sufficiency Escrow account. It was determined that HPD processed disbursements in accordance with its bank account procedures and performed the requisite bank reconciliations in a timely manner. However, HPD does not ensure that subaccounts are established and maintained for program participants, or that subaccounts reflect accurate and up-to-date totals. Recommendations were made to tighten its operations and accounts.