Purpose

To determine the extent of implementation of the three recommendations included in our initial report, Borough of Manhattan Community College: Controls Over Bank Accounts (2015-S-93).

Background

Our initial audit, which was issued August 10, 2016, identified multiple internal control weaknesses that CUNY and BMCC officials need to improve related to the use of bank accounts. As of July 1, 2008, CUNY colleges are required to notify CUNY Central when opening and closing bank accounts. Of the 23 bank accounts that CUNY Central officials identified for BMCC, seven required such a notification. CUNY Central did not have the required notification form for one of these accounts, which was opened in May 2014. Additionally, we identified two accounts, for the BMCC Foundation, that were not on CUNY Central’s list. These findings point to weaknesses in the monitoring of bank accounts, which increase the risk that BMCC personnel could conduct transactions using unauthorized accounts. A review of the source of funds in BMCC’s accounts found $120,116 that BMCC officials should have transferred to the City of New York (City). Of 78 payments (totaling $3,136,579) paid from six judgmentally selected bank accounts, 45 payments totaling $563,605 were either improper (did not comply with CUNY, State, and/or City policies and procedures) and/or were unsupported.

Key Finding

We found BMCC officials had made progress in addressing the issues identified in our initial report. The three 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.

Other Related Audits/Reports of Interest

Medgar Evers College: Controls Over Bank Accounts (Follow-Up) (2017-F-14)
Lehman College: Controls Over Bank Accounts (Follow-Up) (2017-F-18)