Our office examined the New York City College of Technology's (College) use of a Bid Deposit Account (Account) at after learning the College inappropriately paid an employee $24,421 in back salary as part of a settlement agreement. When College officials could provide only limited documentation to show the source of the $928,470 Account balance on August 31, 2010, we analyzed receipts to, and disbursements from, the Account over the previous year to determine the composition of the funds.
We found that the majority of the funds held in the Account should have been remitted to the State Treasury. The Account was originally established to hold deposits from contractors bidding on work at the College. However, we found moneys accumulated in the Account over many years as a result of the College's Research Foundation reimbursing the College for salaries it paid faculty members for conducting Research Foundation funded work. When the Research Foundation reimbursed the College for those payroll expenses, the College deposited the money into the Account instead of returning it to the State Treasury, as required by the State Finance Law.
As a result of the examination, the College of Technology ultimately returned $997,234 to the State Treasury.
For a complete copy of the Report 2010-bse-0403, click here.