New York State Comptroller Thomas P. DiNapoli today announced the following local government audits have been issued.
Overall, auditors determined that the board could have improved its financial management. The board did not appropriately budget for certain expenditures and did not properly monitor spending during the year. The highway fund had deficit fund balances during the audit period and incurred operating deficits in two of the past three years (2016 and 2017). In addition, the board did not develop and adopt comprehensive written multiyear financial and capital plans to help guide the budget development process or establish reserve funds to help finance future capital needs.
Town officials complied with competitive bidding requirements for 15 of 18 tested purchase and public works contracts totaling $10.6 million. However, auditors found they did not competitively bid contracts for paving services and brush collection totaling $471,700. In addition, town officials did not seek competition for 10 professional services totaling $1.1 million. Auditors also found town officials did not obtain quotes as required by the procurement policy for eight purchases totaling about $115,000.
Auditors determined that the Fonda-Fultonville Joint Wastewater Board did not act in accordance with the inter-municipal agreement to operate the Fonda-Fultonville Joint Wastewater Facility, which provides sewage treatment services to residents of both villages. The board did not ensure that the former chairman and former fiscal officer maintained adequate accounting records. Auditors also determined that the board did not provide adequate oversight over financial operations. In addition, the board did not approve and monitor vendor contracts.
City officials did not segregate the duties of the clerks inputting payroll or implement compensating controls. Auditors determined that the council did not adopt policies that address how compensatory (comp) time will be authorized, earned and used. In addition, officials did not have a process to verify accrual balances prior to approving the use of leave accruals.
The town clerk did not record, deposit, disburse and report all moneys collected in a timely and accurate manner. Auditors also determined that the clerk also did not complete monthly bank reconciliations or accountabilities to compare cash on hand with outstanding liabilities. In addition, the board did not provide adequate oversight of the clerk’s activities.
The town board did not develop a comprehensive cash collections policy to provide guidance for payments received at the recreation department. Auditors found that the recreation department did not receipt and remit money in a timely manner. For remittances made in May 2018 and May 2019, the department generated receipts up to 21 days after registration and remitted money up to 24 days after collection.
Auditors determined cash receipts were not remitted timely, accurately and intact and records were inadequate. In addition, cash receipts were not remitted timely and intact, resulting in discrepancies with 44 of 76 remittances (58 percent) to the town clerk. The recycling center cash collection records were inadequate and incomplete
The board funded reserves by $500,000 more than the amounts included in the annual budget over a five-year period. In addition, the fire district did not publish the required legal notices for five expenditures totaling $180,000 that were subject to permissive referendum.
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