Purpose of Review
The purpose of our review was to determine whether Broome County (County) officials have established appropriate controls to safeguard and account for court and trust funds for the period January 1, 2024 through May 31, 2026.
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 Director of the Office of Management and Budget, who is the County Treasurer, did not establish adequate procedures that ensured all court and trust funds were received, accounted for and properly reported. Additionally, reconciliations were not performed in a timely manner among the Director, Couty Clerk and Surrogate’s Court Clerk.
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 Director should perform an annual reconciliation of court and trust funds with the County Clerk and Surrogate’s Court Clerk, and ensure that all court-ordered funds are received, properly accounted for and reported on the annual report to the State Comptroller, and that money deemed abandoned property is paid to the State Comptroller in a timely manner.