Audit Bureau issues 126 audits and special reports

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Audits released by the Office of New York City Comptroller William C. Thompson, Jr. generated $11.1 million in actual revenue and savings and identified $45.6 million in potential revenue and savings, according to a new report released today. The City Charter-mandated report on the Comptroller's Audit Operations details the findings and recommendations of 126 audits and engineering reports issued between July 1, 2001 and June 30, 2002.

"As Comptroller, I will ensure that this office continues to deliver on my commitment to be a fiscal activist dedicated to finding ways to enhance revenues, identify waste and abuse, and improve agency operations," Comptroller Thompson said in a cover letter to Mayor Bloomberg, City Council Speaker Gifford Miller, and members of the City Council.

"New York City is expected to experience increasing budget shortfalls. Even after imposing property tax increases and accounting for the effects of proposed budget cuts, the City faces budget gaps ranging from about $3.4 billion in Fiscal Year 2004 to $4.5 billion in Fiscal Year 2006," Thompson wrote. "Regardless of the City's fiscal condition, the public will expect government to deliver high-quality services."

The report covers the first six months of Thompson's administration and the last six months of the prior administration. During that period, the Comptroller's Office issued audits on services to senior citizens and children, transitional housing for families displaced by fires or unsafe conditions, and transportation services for the disabled.

The report notes that in Fiscal Year 2002, the Comptroller's Office identified $11.1 million in actual revenue and savings, a 164 percent increase from the prior year, and identified $45.6 million in potential revenue and savings, a 1,163 percent increase from the previous year. The average actual and potential revenue and savings per audit climbed dramatically, from $56,000 in FY 2001 to $518,000 in FY 2002 (the highest average in the last five years).

The report identifies the audits that generated the most amount of actual revenue and savings for the City: Time Warner Cable of New York City, the New York Yankees lease agreement, and Toto's South Shore Country Club, Ltd. The three audits that identified the most potential revenue and savings were: the Department of Finance's collection of Environmental Control Board penalties, the Police Department's civilianization efforts, and Shellbank Restaurant Corp. The three audits with the most significant issues pertaining to service delivery were the audits of: the Center for Animal Care and Control (CACC), the Amboy Neighborhood Center, Inc., and the monitoring of senior centers by the Department for the Aging (DFTA).

The City Charter requires 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 Dec. 31st, 2001. The Office performs audits and studies of City agencies and public authorities and private entities that receive funding from or generated revenue for the City.

"For Fiscal Year 2003, I directed my audit staff to identify audit areas that significantly impact City finances and service delivery by performing a comprehensive assessment of City revenues, expenditures, and programs," Thompson wrote. "This assessment provided the basis for a comprehensive audit plan that focuses on the effectiveness and efficiency of City services, the controls over City resources and expenditures, and the quality of the services provided to the public."

Additionally, last year the Comptroller's Office began posting all audits on its website - www.comptroller.nyc.gov - upon their release. A copy of the new report also is available on the website.

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