-Commission Generally Complied with Procedures,

Minor Instances of Non-compliance

View Audit

New York City Comptroller William C. Thompson, Jr. today released an audit examining the financial and operating practices of the New York City Commission on Human Rights (CCHR).

Thompson’s audit – which can be viewed at www.comptroller.nyc.gov – found that CCHR generally complied with City purchasing and inventory procedures, including: Comptroller’s Directives #3, #6, and #24; applicable Procurement Policy Board rules; and the Department of Investigation Standards for Inventory Control and Management.

However, the audit revealed that there were minor instances in which CCHR did not comply with certain purchasing, imprest fund, and inventory control procedures.

“Overall, we found that the New York City Commission on Human Rights has generally abided by directives put forth by both my office and the City,” Thompson said. “There were only minor incidents of non-compliance, which were not sufficient to detract from our overall findings.”

The audit covered the period July 1, 2006 through June 30, 2007 (Fiscal Year 2007). During that same period, Other Than Personal Service (OTPS) expenditures for CCHR amounted to $1,849,980.

CCHR is a Charter-mandated agency that was established in 1955 under Local Law 55 as the Commission on Intergroup Relations. In 1962, the Commission was renamed when its investigation and enforcement powers were expanded.

The New York City Human Rights Law, Title 8 of the Administrative Code of the City of New York, is one of the most comprehensive civil rights laws in the nation. The law prohibits discrimination in employment, housing, and public accommodations based on race, color, creed, age, national origin, alien or citizenship status, gender (including gender identity and sexual harassment), sexual orientation, disability, or partnership status.

CCHR maintains a Community Service Center in each borough. Each Community Service Center is responsible for addressing discrimination complaints and implanting educational and enforcement programs that target accessibility, fair housing, employment, and immigrant issues.

During the course of the audit, several issues were raised that cause concern. Firstly, CCHR lacked bidding documentation for two contracts totaling $23,604. These contracts were for monthly parking space rental for three City vehicles ($11,404) and monthly janitorial services ($12,200).

Although CCHR claimed it canvassed other parking garages, it failed to document the names of parking garages solicited. CCHR claimed that the garage it chose was the only garage in the immediate area willing to offer monthly parking spaces, but Thompson’s auditors found this claim to be unfounded.

The other contract for janitorial services for the Brooklyn and Queens service centers also lacked documentation that other vendors had been solicited.

“Procurement Policy Board rules state that any purchase valued at more than $5,000 is to be awarded to the lowest responsive and responsible bidder,” Thompson said. “While the amounts in question may not seem excessive, it is imperative that all City agencies abide by this directive.”

Furthermore, Thompson also found that CCHR charged the incorrect object code for 3 of 67 purchase vouchers that were tested (totaling $42,442) and 1 of the 5 miscellaneous vouchers tested (totaling $1,369) during Fiscal Year 2007.

“Using incorrect object codes does not allow agencies to accurately categorize the type and amount of a particular item expense during the fiscal year, which can compromise management’s ability to plan future budgets,” Thompson explained.

Thompson’s audit also found that CCHR had several issues of non-compliance in regard to its imprest fund, or petty cash, account. Namely CCHR: improperly spent $386 from the account for a retirement party for one of its employees; issued an improper $572 electronic fund transfer payment amount to United Parcel Service for delivery services; does not have checks imprinted with the restrictive endorsement statement “void after 90 days;” and, did not hand stamp “PAID $ CHECK # DATE” on seven invoices and receipts attached to vouchers.

Lastly, Thompson’s audit also discovered several instances of inventory control weaknesses at CCHR. Auditors examined a sample of 99 office equipment items, and found that: 21 items were not tagged as property of CCHR; 8 fax machines had no tag numbers listed on the inventory list; 3 items observed were not included on the inventory list; and, 1 item had the incorrect serial number indicated on the inventory list.

As a result of the audit Thompson made ten recommendations to CCHR, calling on the Commission to ensure that:

• Documentation of bidding is maintained on file.
• Justification for use of sole-source vendors is in accordance with the PPB rules.
• All payments are charged to the correct object code.
• City funds are not used for retirement luncheons.
• Imprest fund purchases do not exceed $250.
• Imprest fund checks are imprinted with the restrictive endorsement statement “void after 90 days.”
• All invoices and receipts are hand stamped with the information “PAID $ CHECK # DATE.”
• Identification tags are affixed to all items.
• Tag numbers are included for each item listed on the inventory list.
• Complete and accurate records of all equipment are maintained.

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