Tuesday, May 10, 2011

Metrotech Board Votes on Management Agreement with DBP; Bookkeeping Issues Outlined in Comptroller Audit Report

May 9, 2011

Contact Amyre Loomis at (718) 260-9191, (646) 201-8183

MetroTech Board Votes on Management Agreement with DBP - Despite City’s Uncovering of Bookkeeping Issues in recent Audit Report on Downtown Brooklyn Partnership’s Financial and Operating Practices

(Brooklyn, NY) - The text below is from an audit of the Downtown Brooklyn Partnership (DBP) that was posted today by the Office of the New York City Comptroller. This report is issued on the heels of Forest City Ratner having received the 51% Board support (last Friday) required to call a special session of the MetroTech Board, which is scheduled for tomorrow morning. The special session will consider adoption of the MetroTech BID budget for Fiscal Year 2012, as well as the MTBID entering into a management agreement with the Downtown Brooklyn Partnership, Inc.

“Ironically, the NYC Comptroller’s audit of DBP reveals that the Partnership has poor bookkeeping (including timekeeping and tracking of private contributions) and some procurement issues, which leads one to ask why would the MetroTech Board vote to give DBP more responsibility, if the organization already has problems (outlined below) managing the Court-Livingston and Fulton Mall BIDs? It is my hope that MetroTech Board members are fully aware of the NYC Comptroller’s audit findings before their meeting,” said Council Member James.

Audit Report: http://www.comptroller.nyc.gov/bureaus/audit/audits_2011/05-09-11_FN11-068A.shtm

Audit Findings and Conclusions:

Our review found that DBP lacks adequate controls to substantiate its payments to salaried employees. Specifically, our audit noted that DBP did not properly administer its employees’ work hours and leave records. Additionally, DBP does not have proper procedures and records to support the private contributions it receives. Without adequate procedures for the solicitation and collection of these funds, DBP cannot accurately determine its total amount of contributions. This ultimately affects the City’s ability to determine the appropriate amount of contract funds it awards to DBP. DBP also did not always comply with the procurement and reporting requirements of its City contract.

Based on our findings, we recommend that DBP:

§ Ensure the timekeeping system reflects employees’ work hours and time and attendance records to ensure effective tracking of employees’ absences.

§ Develop and maintain a list of private contributors and establish procedures to properly support and account for revenue from private contributions.

§ Adhere to the procurement requirements outlined in Section 6.02 of the contract.

§ Submit timely programmatic and financial reports to the Deputy Mayor’s Office in accordance with its contract with the City.


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