Part 2 of the complete text of the NYC Comptroller's report released in June 1998 on the audit of the Center for Animal Care and Control.
ADDENDUM I - Response From
the Center for Animal Care and Control
[letterhead]
Center for Animal Care and Control
11 Park Place
New York, NY 10007
Tel. 212-442-2076
Fax 212-442-2066
June 8, 1998
Mr. Roger D. Liwer
Deputy Comptroller for
Audits and Engineering
Office of the Comptroller
161 William Street - Room 200
New York, NY 10038-2607
Re: Draft Audit on the Financial Practices of the
Center for Animal Care and Control # FM98-093A
Dear Mr. Liwer:
We have reviewed the above referenced report dated May 22, 1998 and appreciate the opportunity to respond to your findings and recommendations. Attached are CACC's responses to the audit recommendations.
If you have any questions or need further information, [sic] pleas contact Herb Waldhauser, Controller at (212) 442-2055.
Sincerely,
/s/ Marilyn Haggerty- Bohm
Executive Director
Attachment
c: Allan Goldberg
Charles Troob
Linda Vassall
Douglas Mansfield
Herbert Waldhauser
Center for Animal Care and Control, Inc. (CACC)
Response to audit recommendations
Recommendations 1 & 2 - Parking Lot
We disagree. The leasing of the parking lot is an expense that the City should cover under the contract. The lot was originally leased to provide parking for CACC customers. However, when the City began its renovation of the City owned facility, it deemed it necessary to house a construction trailer in the lot. Considering that the City made this decision, it follows that the costs should be covered. That being said, it should be noted that CACC removed this expense in the revised budget modification dated April 17.
Regarding the renegotiation of the lease, CACC believes that this space is necessary as the adjacent area does not provide adequate or safe parking for customers. Although during the construction period it would be unwise and unsafe to allow customers to park in that lot, CACC fully intends to reopen the lot to customers when the construction is completed.
Recommendation 3 - Dog Licenses
We agree. Although the fourth amendment does require CACC to process dog licenses for all adopted dogs, this amendment was not signed by the CACC until July 3, 1997 and thus was not binding until that time. The amendment also states that:
.... Application materials, postage and waiver forms will be provided by the Department...."
The application materials and the waiver forms were not supplied to CACC by the Department (NYC DOH) until April 30, 1998. DOH was required to fulfill its obligation under the contract, regarding the application materials, before CACC could be liable for processing the licenses. The CACC referenced this fact in a letter dated July 14, 1997 to DOH in which the CACC stated it was awaiting the application materials from DOH and could not begin the process until it received those materials. DOH never responded to that letter.
Currently CACC, after receiving the materials from DOH on April 30, 1998, has written a corporate protocol and has scheduled a meeting with shelter staff (May 28, 1998) to discuss and finalize the procedures. CACC intends to implement a procedure, in compliance with contract requirements, in June 1998.
Recommendations 4 & 5 - Repair and Maintenance Expenses
Although CACC agrees that eleven instances did not receive the proper approvals, there are some extenuating circumstances as to why. It should be noted that five of the eleven repair invoices were for HVAC work and were for the same contractor.
Six of the reported repairs, although more than $1,000, were for emergencies. It is not practical to obtain three bids for emergency repairs. CACC felt, and DOH concurred, that the $1,000 threshold was too low. Consequently, the 1998 (dated January 1, 1998) contract threshold was increased to $2,500 and all six of the 1997 emergency repairs were under that figure.
One other item was for a service contract for HVAC maintenance at both the Brooklyn and Manhattan sites and was awarded to the contractor that had originally installed the equipment. In a prior period CACC did award the maintenance contract to a contractor that had submitted the lower of three bids. However, that contractor performed poorly and subsequent repair dollars were incurred to correct their work. Therefore, CACC felt it prudent to retain the services of the original contractor. That decision has proven to be correct.
CACC underwent a change in its financial staff in the third quarter of 1997. Since then, CACC has complied with the contractual requirements.
Recommendation 6 - Revenue Reports
CACC has submitted the required revenue reports since the fourth quarter of 1997.
ADDENDUM II - Response From
the Department of Health
[letterhead]
The City of New York
Department of Health
Office of the Commissioner
125 Worth Street
New York, NY 10013
James L. Capoziello
Chief Administrative Officer/
Deputy Commissioner
Health Support Services
Tel (212) 788-5265
June 8, 1998
Mr. Roger D. Liwer
Deputy Comptroller for
Audits and Engineering
Office of the Comptroller
161 William Street - Room 200
NewYork, N.Y. 10038-2607
Re: Draft Audit Report on the Financial Practices of the
Center for Animal Care and Control # FM98-093A
Dear Mr. Liwer:
We have reviewed the above noted report dated May 22, 1998 and appreciate the opportunity to respond to your findings and recommendations. Attached is the Agency Audit Implementation Plan. We understand that a response will also be submitted by the Center for Animal Care and Control (CACC).
If you have any questions or need further information, please contact Sylvia Bashkow, Director, Office of Management Audits at (212) 442- 8415/8436.
Sincerely,
/s/ James L. Capoziello
Chief Administrative Officer/
Deputy Commissioner
Attachment
C: Allan Goldberg
Ron Bergmann
Richard Naeder
Charles Troob
Linda Vassall
Eileen Reilly (Office of Operations)
Marilyn Haggerty-Blohm (CACC)
Center for Animal Care and Control (CACC)
Audit Finding (page 9): Use of $42,000 in Private Funds to Lease a Parking Lot
Audit Recommendations
1. "CACC should not renegotiate the lease for the private lot."
2. "DOH should not approve CACC's budget modification for reimbursement of the lease costs associated with the private lot."
DOH Response: No DOH action is necessary as CACC withdrew its request for DOH to reimburse lease costs associated with the private lot. Initially, CACC had submitted a budget modification on March 5, 1998 with a revised DOH budget of $271,380 in the vehicle category with a justification of "an unbudgeted parking lot rent in Brooklyn to house vans overnight." However, CACC changed that budget modification on April 17, 1998 to reflect a $42,000 decrease in the vehicle category, leaving a balance of $229,380.
Finding (page 10): CACC Does Not Require Individuals Adopting Dogs to Submit Applications for Dog Licenses
Recommendation
3. "CACC should ensure that all shelter personnel require individuals adopting dogs to submit applications for dog licenses, in accordance with CACC's contract."
DOH Response: We agree. CACC began collecting dog license fees as of July 3, 1997 which were submitted directly to DOH . Effective May 8,1998, DOH initiated the CACC Dog License Protocol permitting CACC to submit its dog license applications and payment fees directly to the DOH Lock Box. Since April 1, 1998, CACC has been deducting the $1.00 for each dog license application they process, as other shelters and pet shops are required to do under New York State Dog Licensing Law for New York City. The dollar is intended to cover the cost of processing each dog license application. DOH will be monitoring CACC's and pet shops' sales of dog licenses as of July 1, 1998.
Finding (page 11): CACC Did Not Adhere to Terms of its Contract for Certain Repair and Maintenance Expenses
Recommendations
4. "CACC should ensure that at least three bids are received for all repairs costing more than $500 ($1,000 in the case of emergency repairs) that are being charged to the City."
5. "CACC should obtain prior approval from DOH before processing the purchases related to the above-mentioned repairs."
DOH Response: We agree and have taken action. DOH recognized the hindrance imposed on CACC's daily operations by requiring at least three bids for all repairs costing more than $500 and $ 1,000 in the case of emergency repairs. Therefore, the 1998 contract renewal states that "written prior approval of the Department is required for any contract or agreement obligating the Contractor to pay more than $ 1,000 and $2,500 in the case of emergency repairs." Additionally, in February 1998, the Bureau of Veterinary Public Health Services hired a new Contract Monitor who thoroughly reviews CACC's Financial Reports and notifies them of disallowed expenses. The Contract Monitor also responds promptly to CACC requests for prior approval.
Finding (page 12): CACC Does Not Report Revenue to DOH
Recommendation
6. "CACC should submit Quarterly Revenue Reports listing all sources of revenue in a form approved by DOH."
DOH Response: We agree. CACC began submitting revenue reports to DOH starting with the calendar 1997 report and the information has been included in their 1998 Quarterly Revenue Report in an acceptable format. The January - March 1998 report was received April 20, 1998.
Other Issues (page 13): Delays in DOH's Processing of Bite Holding Cases
Recommendation
7. "DOH should work closely with CACC to process bite holding cases within 10 days. In this connection, DOH should consider allowing CACC's New York State Licensed Veterinarians to determine whether the animals are "rabies free" and to authorize their release or hire an additional veterinarian."
DOH Response: We agree with the first sentence and have taken action. DOH has begun to work closer with CACC to process bite holding cases immediately after the required ten day time period needed to observe the health status of biting dogs and cats. As of April 13,1998, DOH computerized all CACC holding cases to better track these biting animals. A pilot is being conducted to review the effectiveness of this tracking system through June 30, 1998. All final dispositions for normal holding cases are now faxed to CACC Shelter Directors from ten to thirteen days after the start of the holding period, depending upon when the rabies observation period is completed. However, for some DOH holding cases, the dispositions cannot be determined as quickly, i.e., OATH and Commissioner's Orders, Interagency Cases, Evictions and Humanitarian Cases.
DOH disagrees with the second part of this recommendation. We believe that the determination that an animal is rabies-free is a public health function which should not be delegated. Instead, we have taken the following action. The Department has issued a posting, dated May 8, 1998, to hire a City Veterinarian (P/T) in order to increase our capacity to inspect and observe biting animals at the CACC Brooklyn and Manhattan Shelters.
Other Issues (page 15): DOH's Use of Private Donations
Recommendation
8. "DOH should forward to CACC all private donations received with dog license applications. If DOH decides not to forward the donations, DOH should include a statement on the dog license applications indicating that the donated funds are for DOH/City, not CACC."
DOH Response: We have taken alternative action. Effective February 4, 1998, the DOH Bureau of Veterinary Public Health Services has deleted the word ~DONATION~ from all dog license applications sent out. When new applications are printed, this correction will be made. Therefore, it will not be necessary to include the statement suggested by the auditors.
MAYOR'S OFFICE OF OPERATIONS
AUDIT COORDINATION AND REVIEW
AUDIT IMPLEMENTATION PLAN
AUDIT TITLE: Financial Practices of the Center for Animal Care & Control
DATE: June 8. 1998
AUDITING AGENCY: NYC Comptroller's Office
AGENCY: Department of Health
AUDIT DATE: May 22, 1998
AUDIT NUMBER: FM 98-093A
