Purpose of Review
The purpose of our review was to determine whether County officials have established appropriate controls to safeguard and account for court and trust funds for the period January 1, 2023 through May 31, 2025.
Background
Pursuant to a court order, certain assets may be provided to the court and then delivered to a county treasurer (treasurer) for safekeeping. Payments made pursuant to court orders commonly involve surplus money from foreclosures and contract disputes resulting in a mechanic’s lien. These actions are recorded in the county clerk’s office when payments are deposited as required by court order. Additionally, in certain circumstances, funds from estates are entrusted to the treasurer for safekeeping by order of the county’s surrogate’s court. Together, the treasurer, county clerk and surrogate’s court must develop sound procedures and processes which, when implemented properly and consistently, provide a system of internal controls to account for and safeguard these funds.
Key Finding
The Treasurer’s court and trust ledger did not contain all required information including:
- Date of entry of original order to deposit.
- Date of original receipt of money or securities.
- Date and description of each order directing payment.
- Date and amount of each payment and to whom paid.
Key Recommendation
- The Treasurer should ensure that all required information is included in the Treasurer’s court and trust ledger.