Work in Connection with New York City Seasonal Financing Act

New York City has made substantial progress in the design and implementation of a new accounting system under the Seasonal Financing Act of 1975. A new accounting system is needed to improve control over the city's resources and to improve the accuracy and timeliness of financial information needed to manage the system. The new accounting system will not be implemented by July 1, 1977, as planned. Problems in the accounting system which will prevent the city from producing adequate financial statements for the year ending June 30, 1978 and from receiving an auditor's unqualified opinion are: (1) inclusion of probable inaccurate payroll data in the statements; (2) lack of required financial statements for intragovernmental and enterprise funds; (3) inclusion of inaccurate data in the financial statements for the Capital Projects fund; and (4) lack of a required statement of general fixed assets. Although the city has made major budget cuts under the financial plan, a number of problems remain unresolved, and progress has been marred by the city's inability to hold expenses to the levels originally projected. Other problems involve the moratorium debt, federal loan repayment, and the city's ability to reenter the credit market.