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

Audit Report on the Procurement and Inventory Practices of the Conflicts of Interest Board

ME09-080A
June 26, 2009

AUDIT REPORT IN BRIEF

Download the Complete Audit Report (pdf 198 kb)

This audit determined whether the Conflicts of Interest Board (COIB) complied with applicable procurement and inventory regulations and procedures.  The scope period of this audit was Fiscal Year 2008 (July 1, 2007 through June 30, 2008).

COIB was established in 1990 to interpret and enforce the Conflicts of Interest Law and the City’s Financial Disclosure Law.  COIB is responsible for educating City employees regarding ethical standards, issuing advisory opinions and ensuring that City employees comply with the Conflicts of Interest Law.  In Fiscal Year 2008, COIB expended $1.9 million, of which $193,588 was for Other Than Personal Services (OTPS).

Audit Findings and Conclusions

COIB’s procurement practices generally complied with applicable procurement guidelines, including PPB rules, Comptroller’s Directives, and its own procedures.  Specifically, for our sampled payments, we determined that items purchased were necessary for COIB’s office operation; purchase documents were appropriately prepared and approved; and vouchers had sufficient documentation to support payment.  In addition, imprest fund expenditures did not exceed $250 and included a specific payee; miscellaneous vouchers were used appropriately; and computations on vouchers were accurate. Furthermore, there was an adequate segregation of responsibilities in the procurement process; there were no instances of split purchasing to avoid purchasing rules; and COIB had adequate controls over its inventory of computers and electronic equipment.

However, there were some minor deficiencies in our sample of purchase payment vouchers.  These deficiencies include the use of incorrect object codes and the late payment of some vendor invoices. In addition, two sampled invoices were not stamped “Vouchered” or “Paid”, and five sampled payment vouchers were not properly approved.            

Audit Recommendations

To address these deficiencies, the audit recommends that the COIB:

• Follow the City Chart of Accounts to ensure that expenditures are charged to correct object codes.

 

• Require that invoices are date-stamped upon receipt and/or that the dates of the certification of the receipt of goods or services are recorded.

• Ensure that all invoices are paid within 30 days of receipt of the invoice or of the certified receipt of the goods or services provided.

 

• Ensure that the correct invoice receipt dates are entered in New York City Financial Management System when processing payment vouchers.

Agency Response

In its response, COIB officials generally agreed with the audit’s findings and recommendations.