Town of Delhi – Pool Project Donations and Disbursements (2020M-105)

Issued Date
January 15, 2021

[read complete report - pdf]

Audit Objective

Determine whether the Town of Delhi (Town) Board (Board) properly managed pool project donations and disbursements.

Key Findings

The Board did not properly manage pool project donations or disbursements. For example, the Board:

  • Improperly allowed the West Branch Recreation and Aquatics Committee (Committee) to act under the auspices of the Town and organize fundraising activities that should not have been conducted as an affiliate of the Town.
  • Inappropriately used Town funds to pay at least $8,000 for fundraising activities.
  • Did not properly document donations it received totaling $117,300.

In addition, 77 of the pool checks were improperly disbursed. The Town Supervisor (Supervisor), as the Town disbursing officer, should have signed the checks. However, the Committee Treasurer, a private citizen or a Board member signed them.

Key Recommendations

The Board should:

  • Clearly define the arrangement between the Town and the private citizen’s group so that it does not appear the Town is fundraising.
  • Ensure that the Supervisor signs all Town checks after Board audit and approval.
  • Document all gifts and donations in the Board minutes.

Town officials agreed with our recommendations and indicated they plan to initiate corrective action.