THE CITY OF NEW YORK OFFICE OF THE COMPTROLLER
BUREAU OF FINANCIAL AUDIT

AUDIT REPORT ON THE NEW YORK YANKEES RENTAL CREDITS FOR THE THIRD QUARTER OF 2005
JULY 1 – SEPTEMBER 30, 2005

FN06-119A
JUNE 19, 2006

AUDIT REPORT IN BRIEF

Download the Complete Audit Report (pdf 285 kb)

The Comptroller’s Office is required to audit all rental credits claimed by the New York Yankees for the maintenance of City-owned Yankee Stadium. Under the terms of the lease, the Yankees are responsible for the care and upkeep of Yankee Stadium; the costs incurred by the Yankees for maintaining the stadium are offset against any rental income due the City from the Yankees. Thus, every approved dollar spent and accounted for as a rental credit for the maintenance of the stadium results in a dollar-for-dollar decrease in the rent due the City.

Audit Findings and Conclusions

The audit found that Yankee rental credits submitted for the third quarter of 2005 were overstated by $187,224.39, as follows:

• $42,417.87 in excess payroll charges and salary expenses that should have been paid by the Yankees.

• $116,001.23 in payments to ADCO Electric, consisting of labor and material costs that should not have been charged to the City based on the terms of the agreement.

• $27,893.57 in Yankee Stadium repairs for which the expenses are not chargeable to the City or lacked documentation.

• $911.72 in expenses that are not City costs under the terms of the lease and cannot be offset against rental income.

Audit Recommendations

We recommend that the Yankees deduct $187,224.39 from the total rental credits taken for maintenance pertaining to the third quarter of 2005, ensure that all maintenance credits claimed are properly supported by sufficient documentation, and ensure that appropriate approvals from the Department of Parks and Recreation (Parks) are obtained prior to submitting rental credits to the Comptroller’s Office. In addition, we recommend that Parks ensure that the Yankees comply with the report’s recommendations.