Purpose

To determine the extent of implementation of the two recommendations included in our initial report, Medgar Evers College: Controls Over Bank Accounts (2015-S-92).

Background

Our initial audit, which was issued June 3, 2016, found that all 14 accounts were opened after CUNY’s bank authorization policy was established in 2008. However, CUNY Central did not have any of the required notification forms for these accounts. Additionally, our inquiry of banks located in the proximity of the college found an additional two accounts that were not on the list. These findings point to weaknesses in the monitoring of bank accounts, which increase the risk that Medgar Evers College (MEC) personnel could conduct transactions using unauthorized accounts. Our audit also found that of 54 payments (totaling $810,608) paid from six judgmentally selected bank accounts, 26 payments totaling $118,782 were either improper (did not comply with CUNY and/or State and City policies and procedures) and/or were unsupported. In some transactions funds were not used for their intended purposes.

Key Finding

We found MEC officials made progress in addressing the issues identified in our initial report. Both of the two prior audit recommendations were partially implemented.

Key Recommendation

Officials are given 30 days after the issuance of the follow-up review to provide information on any actions that are planned to address the unresolved issues discussed in this review.