New York State Comptroller Thomas P. DiNapoli today announced the following local government audits were issued.
Herkimer County Industrial Development Agency – Claims Auditing (2022M-12)
Auditors reviewed 100 claims totaling $846,279 and determined they were for appropriate purposes and generally supported by adequate invoices and/or other documentation. However, none of these claims were independently reviewed and approved prior to payment. The board did not appoint someone to audit claims and did not develop and adopt written policies, procedures or other guidance to communicate expectations for the claims audit process.
City of Hornell – Business Improvement District (BID) (Steuben County)
The council did not provide sufficient oversight of the BID and the BID Plan lacked sufficient detail to allow city officials to adequately monitor the use of BID funds. The council did not enter into a written agreement with the district management association or monitor how the association used BID funds, resulting in revenues of at least $3,915 that were unaccounted for and 138 questionable disbursements by the association’s executive director totaling $24,955. Based upon audit findings and a subsequent investigation, the executive director of the association was arrested in January 2020 and charged with Grand Larceny in the Fourth Degree and Falsifying Business Records in the First Degree. On January 7, 2022, the executive director pled guilty to Grand Larceny in the Fourth Degree and was ordered to pay $1,711 in restitution.
City of Lackawanna – Garbage Collection Fees (Erie County)
City officials did not always assess and bill garbage fees in accordance with the City Code. Officials also did not provide adequate oversight or develop policies and procedures for assessing and billing garbage fees. Of the 33 properties reviewed, 30 were not assessed and/or billed the correct garbage fees in accordance with the code. Twenty-five of these properties were underbilled a total of $6,350. While 16 organizations were billed for garbage services they received, the Code indicates the organizations were not eligible for such services. Of the 27 garbage fee exemptions reviewed, 14 lacked appropriate support and/or did not comply with city requirements.
City of Lackawanna – Network Management and Internal Controls (Erie County)
City officials did not establish adequate controls to safeguard the network against unauthorized access or disruption. City officials did not regularly review, identify and disable unnecessary network user accounts. As a result, 14 unnecessary generic network user accounts and 26 usernames associated with inactive or former employee accounts were not disabled. City officials have not developed written IT policies and did not provide users with IT security awareness training.
Schonowe Volunteer Fire Company, Inc. – Board Oversight (Schenectady County)
The board did not develop financial procedures for collections and disbursements, periodically monitor the budget or ensure the constitution was followed. As a result, the company was unable to confirm all money was recorded and deposited intact. Collections totaling $8,956 lacked proper supporting documentation to determine whether they were deposited intact and disbursements totaling $3,052 were not properly supported, audited or authorized before payment.
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