DiNapoli Audit Results in Nearly $1 Million Reimbursement to State Treasury by City Tech College
The New York City College of Technology has returned $997,234 to the State Treasury following an audit of the college’s bid deposit account by New York State Comptroller Thomas P. DiNapoli. College officials could not adequately identify the source of the $928,470 balance in the account to auditors. Officials also admitted that funds from the account had been used for unauthorized or inappropriate expenses.
“New York needs every higher education dollar,” DiNapoli said. “Money should not be stashed in an ‘unofficial’ account. The reserves were meant to be available to pay vendors or returned to taxpayers, and now that will happen. CUNY and SUNY are implementing tuition increases. That’s an extra burden for students and families who are already struggling in this economy. There aren’t any extra millions to leave lying around. We’ll keep auditing to make sure New York’s public colleges aren’t wasting resources or mismanaging funds.”
DiNapoli’s audit, covering the period between September 2009 and August 2010, began after auditors learned that the college paid an inappropriate $24,421 legal settlement using bid deposit funds. College officials told auditors that the account had been used as an “unofficial salary advance account” for several years.
The bid deposit account was established in 1981 to hold deposits from contractors bidding on work at the college. Over time, it was also used to hold salary reimbursements from the college’s research foundation for work performed by faculty during summer break. Under the State Finance Law, the reimbursements should have been returned to the state treasury.
Auditors called for the college to close the account and return the remaining balance to the treasury. The amount remitted was greater than the original recommendation due to additional deposits made after the end of DiNapoli’s audit.
A copy of the audit can be seen here: http://www.osc.state.ny.us/audits/allaudits/2010-BSE-0403.htm
DiNapoli began a comprehensive audit of the State University of New York (SUNY) Research Foundation in June.