New York State Comptroller Thomas P. DiNapoli today announced the following local government audits were issued.
Town officials did not adequately safeguard and account for department assets. Officials did not maintain an up-to-date inventory, perform periodic physical inventories, obtain board approval for all disposals or dispose of department assets in accordance with the town’s capital asset policy. Sixteen assets with costs totaling $35,701 could not be located.
The board was not properly auditing claims prior to approving them for payment. As a result, the risk is increased that claims could have been paid for inappropriate purposes. In a sample of 100 claims totaling $203,349, 68 claims totaling $116,411 were not audited by the board as required. Fifty of the claims totaling $120,992 did not have appropriate support such as a voucher, itemized receipt or invoice and 15 of the claims totaling $40,352 were approved without evidence of compliance with competitive bidding requirements or the town’s procurement policy. Town officials may have saved $7,559 in fuel costs if they had been able to use the New York State Office of General Services contract pricing option.
The company board did not ensure compliance with contracts or enforce the lease agreement’s terms and conditions. As a result, there is an increased risk that funds could be subject to loss, theft or misappropriation. The board did not develop written financial policies or procedures, properly prepare a budget and present it to the towns or audit the company’s records. The board did not regularly review and approve financial transactions or charge service fees and interest for late payments associated with the lease agreement.
The clerk did not record, deposit, remit or report collections in a timely and accurate manner. As a result, the board’s ability to effectively monitor financial operations was diminished. Had the board conducted the required annual audits, it may have recognized these deficiencies and taken corrective action. The clerk did not maintain adequate records and supporting documentation, including a cash book or duplicate receipts for all transactions and did not prepare monthly bank reconciliations and verify the accuracy of the financial records. As a result, the clerk’s bank account balance was $6,251 more than it should have been as of April 21, 2022.
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