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New York State Accounting System User Procedures Manual

Volume Name
CONTROLS AND SPECIAL PROCEDURES
Volume
XI
Date
06/12/02
Section Name
Special Procedures - Theft/Loss/Misuse of State Assets
Section
7.0200

Purpose

We want to advise State agency staff and managers of the requirement to report the theft, loss or misuse of State assets and supplies to the State Comptroller's Office.

Background

Under Article 2, Section 8 of the State Finance Law, the State Comptroller is to superintend the fiscal concerns of the State. To enable the Comptroller to carry out this fiscal responsibility, it is important that State agencies and organizations inform this office of any suspected theft, loss, misuse or inappropriate action involving State funds, equipment, supplies and other assets. Improper transactions must be reported to the Office of the State Comptroller as soon as they are identified. It is not appropriate to wait until an investigation has been completed and/or forwarded to an investigative agency before notifying the State Comptroller's Office.

Requirements

Improper transactions include, but are not limited to the following circumstances:

  • Unaccounted for cash in any amount, including inmate or patient cash,

  • Unaccounted for cash in agency cash advance accounts including unrecovered salary or travel advances made to current or former employees,

  • Unauthorized cash withdrawals from agency bank accounts,

  • Unexplained discrepancies in cash balances and/or bank reconciliations,

  • State paychecks prepared for individuals not authorized to receive them,

  • Payroll transactions resulting in overpayments, such as those resulting from improper time and accrual records,

  • Unauthorized or improper use of State credit cards,

  • Theft or loss of supplies, equipment or other physical assets in excess of $1000 per occurrence,

  • Any indications that fraud may have occurred or improper expenditures have been made,

  • Unauthorized or improper disbursements, including actions involving contractors, sub-grantees or other recipients of State funds,

  • Any other actual or suspected financial discrepancies.

Thefts should be reported to the appropriate police authorities and the State Comptroller's Office at the same time. If an employee is involved in the theft or misuse of State funds, an agency may also refer the situation to the Inspector General's Office for review. If applicable, the OGS Bureau of Insurance should be notified so that recovery can be made under the provisions of a blanket fidelity bond.

A detailed explanation of the incident must be sent to:

Office of the State Comptroller
Deputy Comptroller
Division of Contracts and Expenditures
110 State St - 10th Floor
Albany, NY 12236