This letter report dated on November 30, 2012 addresses World Ice Arena, LLC's compliance with its New York City license agreement to operate and maintain an ice-skating facility in Queens, New York. The objective was to determine whether World Ice accurately reported its gross receipts to the Department of Parks and Recreation and properly calculated and paid its fees due to the City. It was determined that World Ice generally maintained adequate controls over the recording and reporting of its gross revenues, calculated and paid its fees on time to the City. However, World Ice did not use pre-numbered contracts for group events as required by its agreement. Recommendations were made to rectify this issue.
A follow up audit report was filed on November 29, 2012 on the controls of the Department of Transportation (DOT) over City disability parking permits. The follow-up audit concluded that DOT had improved its controls over the issuance of City disability parking permits. Of the 12 recommendations given in the previous audit, DOT had fully implemented 8. It was determined however that DOT did not conduct periodic physical inventory counts of the seals inventory to ensure that its inventory records were accurate. It was also determined that the Parking Permit Unit did not reconcile the number of seals given to its staff to finalize the permits with the actual number of permits finalized and mailed. Recommendations were made to rectify these issues.
An audit report was filed on November 28, 2012 on the Department for the Aging's (DFTA) awarding of non-competitive and limited-competition contracts. It was determined that DFTA generally had adequate controls relating to the awarding of said contracts and evaluated contractor performance before awarding such contracts. However, DFTA had some internal control weaknesses relating to its contract process and the awarding of its contracts. Recommendations were made to rectify these issues.
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.
Reports on the City's State of Good Repair need and the agencies' planned spending to address this need. The program consolidates results of cyclical field surveys and estimates the Capital and Expense needs to keep major City owned facilities and infrastructure in a State of Good Repair.
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.
In accordance with the requirements of the New York State Municipal Assistance Corporation Act and the New York State Financial Emergency Act, the City of New York is required to submit monthly financial reports. In accordance with the requirements of the New York State Municipal Assistance Corporation Act and the New York State Financial Emergency Act, the City of New York is required to submit monthly financial reports.