New York State Comptroller Thomas P. DiNapoli today announced the following local government audits have been issued.

Town of Brookhaven Local Development Corporation – Project Approval and Monitoring (Suffolk County)

The board did not properly approve and monitor projects and did not incorporate job creation and retention goals into each project’s resolution. Consequently, the board cannot determine whether the projects are meeting their intended purposes. While the board president, CEO and CFO questioned whether setting goals was practical, and said it was not legally required, the board should strive to ensure that town residents realize increased prosperity and economic benefit from the projects that the corporation approves. To do so, the board must establish measurable goals for all approved projects, monitor the projects to ensure these goals are met and establish written project approval and monitoring policies or procedures.

Livingston County Court and Trust (2022-C&T-4)

Upon receiving notification of the impending review of court and trust funds, the treasurer and county clerk reconciled their records and found that the treasurer did not receive surplus money from a referee after the sale of foreclosed property on April 1, 2017, totaling $87,849. However, auditors were able to determine all money from the sale of the foreclosed property totaling $176,000 was paid directly to the lienholder. Auditors also found that the treasurer did not report all court and trust fund transactions as required. Specifically, the treasurer did not report surplus funds received and disbursed during 2017, totaling $23,461. Auditors found the records maintained by the county clerk and surrogate’s court were up to date and complete.

Utica Harbor Point Development Corporation – Budgeting and Board Oversight (Oneida County)

The board and officials did not establish realistic budgets. Also, the board did not review periodic financial reports to monitor the budget and finances and did not establish a comprehensive written multiyear financial plan. The board adopted budgets that did not include realistic revenue and expense estimates, which caused funding gaps. As of Dec. 9, 2021, the corporation’s projected costs exceeded revenues by about $2.3 million. While the corporation received grant funds for two projects, officials relied on lines of credit (LOCs) to provide cash flow for several years. The corporation’s ability to pay off the LOCs is contingent on the sale of three properties, which officials plan to sell in 2022. However, the board has not developed alternative plans to satisfy the debt should the properties not sell.

Village of Bemus Point – Clerk-Treasurer (Chautauqua County)

The clerk-treasurer did not properly deposit, record, report and disburse village funds and was arrested in February 2021 and charged with grand larceny, falsifying business records, forgery, and official misconduct. In December 2021, she pleaded guilty to petit larceny and paid restitution to the village. The board did not monitor the clerk-treasurer’s work, implement compensating controls, or audit the records as required. Specifically, the clerk-treasurer did not properly deposit, record or report taxes collected, issue duplicate receipts or maintain other adequate supporting documentation. The clerk-treasurer also did not file payroll tax reports or remit payments totaling $40,837 and, as a result, the village was assessed penalties and interest of $18,100.

Delaware County – Court and Trust Funds (2022-C&T-2)

Auditors found the treasurer established adequate procedures, maintained appropriate records, and properly reported court and trust funds as prescribed by statute. Records maintained by the county clerk were generally up to date and complete and without any material discrepancies. Although the surrogate’s court clerk maintained copies of all court orders filed in her office, she did not make entries into a surrogate’s register to record money ordered to be paid into a court. As a result, the assets ordered to be paid into court and her records could not be used to verify that all court-ordered deposits had been properly received and deposited.

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