NYC Audit Uncovers $1.4 Billion in Unpaid Fines

An audit conducted by the New York City Department of Investigation (DOI) uncovered $1.4 billion in unpaid fines, Gothamist reports. This includes $782 million in fines issued by the city’s Environmental Control Board for infractions such as uncleaned streets, health and building code violations, and illegal street vending, water disposal, and dumping. An additional $635 million in fines were written off, the independent investigatory body reported.

The city’s tracking system is “riddled with problems making it difficult, if not impossible, to zero in on an exact figure of dollars lost to New York City,” says DOI Commissioner Margaret Garnett.

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Different city agencies collect fines, depending on the amount of the fine charged, with the Department of Finance following up on fines less than $25,000. The Law Department is responsible for collecting larger fines. There is no central database for the agencies to track outstanding payments, and the DOI found that 110 approved city vendors had unpaid fines.

The report on payment discrepancies comes as the city is confronting a $9 billion deficit exacerbated by the COVID-19 pandemic. Moody’s Investor Services also downgraded the city’s credit rating from Aa1 to Aa2 this week.   Internal audit end slug


Elizabeth Mullen is an editorial consultant for Internal Audit 360°.

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