Purpose

To determine the extent of implementation of the four recommendations included in our initial report, Lehman College: Controls Over Bank Accounts (2014-S-69).

Background

Our initial audit, which was issued April 21, 2016, found two accounts that were not on CUNY Central’s list that Lehman opened prior to the implementation of the 2008 banking policy.   One was a Certificate of Deposit account (totaling $65,034).  In addition, of the 72 payments (totaling $1,248,139) from five judgmentally selected bank accounts, 25 payments totaling $114,554 were either improper (did not comply with CUNY and/or State and City policies and procedures) and/or were unsupported. We also found that a non-tax levy account contained tax levy dollars that Lehman should have turned over to the State. As of March 2015, these funds totaled over $1 million. These findings point to weaknesses in the monitoring of bank accounts, which increase the risk that Lehman College personnel could conduct transactions using unauthorized accounts.

Key Finding

We found Lehman officials had made progress in addressing the issues identified in our initial report. Of the four recommendations, two were implemented and two 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.

Other Related Audits/Reports of Interest

Lehman College: Controls Over Bank Accounts (2014-S-69)
Medgar Evers College: Controls Over Bank Accounts (2015-S-92)