Purpose of Review
The purpose of our review was to determine whether Otsego County (County) officials have established appropriate controls to safeguard and account for court and trust funds for the period January 1, 2023 through July 31, 2025.
Background
Pursuant to a court order, certain assets may be provided to the court and then delivered to a county 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, County Clerk and Surrogate’s Court Clerk generally maintained appropriate records and properly reported court and trust funds. However, we identified $74,150 from 15 actions that improperly remained in the Treasurer’s custody that he should have turned over to the State Comptroller as abandoned property.
Before our review began, the Treasurer corresponded with the Otsego County Surrogate’s Court and the State Comptroller in July 2025 for guidance on the appropriate handling of abandoned property. By the end of our review, the Treasurer told us he received the necessary guidance on the appropriate handling of abandoned property and was moving forward with paying the abandoned property to the State Comptroller.
Key Recommendation
- The Treasurer should ensure that all money deemed abandoned property is paid to the State Comptroller in a timely manner.