New York City Department of Finance

Court and Trust Division, Controls and Accountability Over Court and Trust and Bail Funds

The Department of Finance's Court and Trust Fund Division (Division) is responsible for the receipt, safeguarding, investment and disbursement of Court and Trust and Bail funds placed with it by various New York City Courts, the five County Public Administrators, the Department of Correction (DOC), and other City agencies such as the Human Resources Administration (HRA). Our audit found that there needs to be considerable improvement in the management controls of the various agencies responsible for administering the substantial sums deposited each year to the court and trust and bail accounts. For example, duties are not adequately separated; a Division employee with backup responsibilities for posting receipts to the cash receipts journal prepares the monthly bank reconciliations, maintains custody over the check signature plate, and affixes the signature of DOF's Commissioner to each check. Also, certain court employees have custody of cash and checks as well as the recordkeeping responsibility. In addition, funds collected at the courts and DOC's facilities were often not delivered to Finance within two days, as required. At HRA, there was minimal activity in the 3,700 Burial Trust accounts totaling $1.2 million. Most of these accounts were established between 1957 and 1973 and some were over 50 years old. In response to our request about the status of 103 burial trust clients, HRA reported that 9 of the clients were still alive, 15 were decreased and it did not have sufficient information about the other 79 clients.

For a complete copy of Report A-4-94 click here.