Going Coastal

One of New York’s most enchanting getaways _ a boat marina on the Hudson River where some people live, dine and relax _ is in trouble with city authorities. The city comptroller said Wednesday that fiscal irregularities at the 79th Street Boat Basin have “left the door open to potential fraud.”

An audit by Comptroller William C. Thompson Jr. found that the Parks Department has “dropped the ball and seriously failed to properly monitor” operations at the facility along the Hudson River on Manhattan’s Upper West Side.

In response to the audit, the Parks Department dismissed the comptroller’s concerns about fraud, noting that the Boat Basin has generated increased revenue, according to Thompson’s office.

Thompson said that since marina rates have remained about the same and the facility did not substantially expand, the revenue increase underscores that “fraud may have occurred.”

The audit is being reviewed by the Department of Investigation, an independent city agency charged with rooting out corruption and fraud in city government.

Parks officials did not immediately return calls for comment on Wednesday.

The marina offers seasonal and transient dockage, mooring, parking and other services like kayak and canoe storage. Some people even live in boathouses docked along the river, complete with satellite dishes and furniture. The riverside path is a favorite walking and biking spot for New Yorkers, who also can stop to have a bite on the terrace of a restaurant overlooking the marina.

Fees for the basin services are forwarded to the Parks Department’s Revenue Division.

For fiscal years 2005, 2006 and 2007, reported revenues for the Boat Basin were about $874,000, $949,000 and $1 million, respectively _ a total increase of more than $200,000 over those years.

Thompson’s audit found “a complete disregard” for internal controls over the collecting, recording and reporting of revenues.

Twenty-three customers informed auditors that they paid parking fees totaling $66,250 for calendar year 2005. The Boat Basin, however, recorded only $22,750 in payments, according to Thompson’s office.

For calendar year 2006, 25 customers said they paid fees of $71,000, while the Boat Basin recorded only $57,750.

Auditors encountered obstacles and delays in obtaining basic documentation, while the Boat Basin failed to monitor that boats are insured and registered, as required by city rules, the audit said. The Parks Department also failed to institute standard rates for charter and educational vessels.

The comptroller has asked the Parks Department to establish and implement a system of internal controls over the marina’s finances, with boats properly insured and registered and regular rates set for the vessels that occasionally dock there.

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On the Net:

City comptroller: http://www.comptroller.nyc.gov

By VERENA DOBNIK
Associated Press