Consumer Affairs

A recent audit of Nassau County’s Office of Consumer Affairs (OCA) by County Comptroller Howard Weitzman found that overall, the office had good controls over its operations, but needed to upgrade and modernize the office information technology and improve its tracking system for payments and fees collected. The audit covered the period of January 2004 through December 2006 and examined the OCA’s compliance with the County Administrative Code, laws, ordinances and reviewed internal controls.

"While the Office of Consumer Affairs does a great job performing a wide range of duties, the office would benefit from upgrading its information technology so that there could be better tracking of payments within the office,” said Weitzman. “Overall, Nassau County consumers are well-served and protected by the office.”

The Office of Consumer Affairs performs a wide-range of functions, including investigating consumer complaints and frauds against consumers; inspecting and testing weighing and measuring devices; licensing home improvement contractors; collecting and administering the Home Improvement Restitution fund, which compensates consumers unable to collect judgments from a contractor; registering for-hire vehicles operating in Nassau; registering Automated Teller Machines (ATM) operating in nonfinancial institutions; and other enforcement matters.

Auditors found that the office needed to improve on its information technology. For example, the system the OCA used to track consumer complaints and home improvement licenses lacks the necessary ability to provide financial data. Many of the processes within the OCA are still manual and labor intensive.

The OCA Commissioner agreed, stating: “the OCA has “been requesting new technology and accounting help for more than six years. It is the sincere hope of this agency that this audit will result in the long sought after upgrades in technology and supplemental accounting staff.”

During the audit period the OCA reported revenues totaling $11,484,575. Revenues are collected for home improvement licenses; inspections of weights and measuring devices; for-hire vehicle registrations; ATM registrations; fines; state reimbursements and other receipts.

Several of the OCA’s divisions collect payments from merchants, contractors and taxi and limousine operators. These payments are made either in person or via mail and represent licensing, registrations, inspection and violation fees. However, according to the audit, the OCA has no centralized process or accounting function to collect and record these receipts. The audit noted deposits were not always made on a timely basis and for some divisions, individual receipts could not be traced to the County’s general ledger. On a positive note, the OCA does not accept cash, and payments are collected in the form of certified/bank checks or money orders, thus reducing the risk of lost or misappropriated funds.

"Because the OCA does take in so much revenue, the office needs to do a better job of depositing and tracking all payments and fees collected on a timely basis,” Weitzman added.

Several of the recommendations suggested in the audit report were implemented by the OCA.

Weitzman: ‘Office of Consumer Affairs needs technology update & improvements in tracking receipts’