New York State Thoroughbred Breeding and Development Fund
Internal Controls Over Financial Operations (Follow-Up Report) The New York State Thoroughbred Breeding and Development Fund oversees the registration of State-bred horses, and distributes incentives and awards to breeders and owners of these horses. The Fund receives a portion of the amounts wagered on thoroughbred races in New York State.
In audit 2004-S-57, we examined the adequacy of the Fundís system of internal controls over its financial operations. We identified a number of significant weaknesses in these controls, particularly in the areas of revenue accountability, revenue collection, procurement, and the Fundís Executive Director. For example, the Fund relied on racetracks and off-track betting corporations to remit the correct amount of revenue; it did not verify the amounts owed against pari-mutuel wagering records. In addition, the Executive Director was allowed make personal purchases on a routine basis with the Fundís corporate credit card; the Executive Director later reimbursed the credit card company for amounts said to be personal purchases, but maintained no documentation to differentiate his personal purchases from his business purchases. When we followed up on these matters with Fund officials, we found that they had implemented most of our audit recommendations.
For a complete copy of Report 2007-F-17 click here.