Audit Objective
Did the Town of Union (Town) Board (Board) provide for an annual audit of the Town’s financial records, and did the Comptroller file the Annual Financial Report (AFR) with the Office of the State Comptroller (OSC) as required?
Audit Period
January 1, 2024 – May 1, 2025
We extended our observation of annual AFR filings forward to November 28, 2025, and back to fiscal year 2023.
Understanding the Audit Area
To help promote transparency, a town board should provide for a thorough and sufficiently detailed audit of the town’s records to determine whether the accounting records are properly maintained, and that reports are complete and accurate. Furthermore, the town board should also ensure that the town comptroller annually prepares, files and makes the AFR available to the public.
With a population of 56,138, Town officials budgeted a total of $20 million for the general fund and highway fund appropriations in fiscal year 2024 and provided essential services to the public, such as general government support, street maintenance and improvement, snow removal, fire protection, and water, sewer and refuse collection.
Audit Summary
The Board did not provide for a timely annual audit of the Town’s financial records for fiscal year 2024.In addition, the Comptroller did not prepare and file the 2024 AFR with OSC, as required by NYS General Municipal Law (GML) Section 30.Furthermore, the Comptroller did not provide the Board with complete, accurate and reliable monthly financial reports.
Had the Board received complete, accurate and reliable monthly reports and ensured a timely annual audit of the Town’s books, records and documents, it may have identified and potentially helped remedy these issues. Without complete, accurate and reliable financial information, the Board cannot effectively monitor the Town’s financial position and available fund balance to make informed decisions. Because the Comptroller did not fulfill her statutory responsibilities, transparency of the Town’s fiscal condition was diminished, as Town residents, taxpayers, OSC and other interested parties did not have access to the Town’s current fiscal activities.
Based on our review of the Town’s records, we determined that the Comptroller did not:
- Reconcile the Town’s primary debt service and checking bank accounts, due to numerous misstatements in the general ledger, hindering the Board’s ability to oversee the Town’s financial operations.
- Provide monthly budget status reports and balance sheets to the Board. Without a periodic review of all financial information, the Board cannot effectively monitor the Town’s financial activity and make informed decisions.
This report includes nine recommendations that, if implemented, will improve the Town’s financial reporting and help the Board and Comptroller improve the transparency of their fiscal activities. Town officials generally agreed with our recommendations and their response is included in Appendix B.
We conducted this audit pursuant to Article V, Section 1 of the State Constitution and the State Comptroller’s authority as set forth in Article 3 of GM. Our methodology and standards are included in Appendix C.
The Board has the responsibility to initiate corrective action. A written corrective action plan (CAP) that addresses the findings and recommendations in this report should be prepared and provided to our office within 90 days, pursuant to Section 35 of GM. For more information on preparing and filing your CAP, please refer to our brochure, Responding to an OSC Audit Report, which you received with the draft audit report. We encourage the Board to make the CAP available for public review in the Town Clerk’s (Clerk’s) office.