Annual Audit Report

Report To The Mayor and City Council on City Comptroller Audit Operations - Fiscal Year2001
March 1, 2002
(Size: 791KB)

March 1, 2002

Mayor Bloomberg, Speaker Miller, and Members of the City Council:

I am pleased to transmit the New York City Comptroller's Charter-mandated report on audit operations. The report contains the major findings and recommendations of all audits issued by the Comptroller's audit bureaus in fiscal year 2001. The audit bureaus issued 157 audits and special reports, and the Bureau of Engineering issued five reports during the fiscal year. Many of these reports focused on program effectiveness and service quality. Others identified potential and actual cost savings and revenue enhancement, amounting to more than $4 million in actual revenue and more than $12 million in potential savings, revenue, and cost avoidance.

The City Charter requires that the Comptroller's audit activities be conducted in accordance with Generally Accepted Government Auditing Standards, issued by the Comptroller General of the United States. These standards require that the audit bureaus undergo an external quality assurance review every three years. The Institute of Internal Auditors completed such a review in November 2001 and concluded that the bureaus fully conform to the government auditing standards. In addition, the Charter mandates that every City agency be audited at least once every four years. The Comptroller's Office successfully met this mandate for the third four-year cycle that ended December 31, 2001.

Although this report covers the audit operations of the previous administration, it is of special significance to me because it affords me the opportunity to share my plans regarding the audit function of the Comptroller's Office. New York City is expected to experience increasing budget shortfalls, from about $4.766 billion in fiscal year 2003 to $5.356 billion in fiscal year 2005. Consequently, agencies may be required to make reductions that could weaken basic internal controls over their resources and expenditures. My auditors, therefore, will dedicate a portion of their efforts to evaluate controls and to illustrate how they can be strengthened. Regardless of the City's fiscal condition, the public will expect its government to deliver high quality services. The Comptroller's audits present an opportunity to help meet the public's expectations.

Providing a quality education to our children, ensuring the availability of affordable housing for City residents, and delivering social services to people in need are among my highest priorities. Therefore, my audit bureaus will endeavor to find ways for improving the delivery of these and other essential City services. In addition, the bureaus will continue their efforts at identifying ways both to reduce City costs and maximize City revenues.

I am committed to reporting our audit findings to the public to ensure that City officials are held accountable and that recommended actions are taken.

As Comptroller, I will be a fiscal activist dedicated to finding ways to enhance revenue, identify waste and abuse, and improve agency and program efficiency and effectiveness. In this regard, I will ensure that my audits play a significant role in ensuring the financial stability of the City while improving City services.

Very truly yours,

William C. Thompson, Jr.