New York State Comptroller Thomas P. DiNapoli today announced the following local government and school audits were issued.
Village of Addison (Steuben County)
DiNapoli’s office began a comprehensive review, comprised of three audits, of the village in 2022 and found the clerk-treasurer had been running the financial operations of the village with no oversight. As a result of the Comptroller’s audit and subsequent investigation, the former clerk-treasurer, who resigned in March 2023, was arrested in November of that year and charged with misappropriating funds and making unauthorized payments totaling more than $1.1 million over a 19-year period. In May 2024, she pleaded guilty to one count of first degree corrupting the government (B felony) and was sentenced to three to nine years in state prison in August 2024. As part of her sentence, the former clerk-treasurer was required to forfeit her monthly public pension. This sentence represents the first time a public official in New York surrendered her pension as a penalty for corruption while in office.
Summary of three audits released:
The former clerk-treasurer did not properly deposit, record, report or disburse village funds and misappropriated more than $1.1 million for personal gain. The former clerk-treasurer was able to perform these acts without detection because the board failed to fulfill its fiscal responsibilities, provide oversight and segregate the duties of the former clerk-treasurer. She misappropriated revenue collections totaling $925,757 and made questionable or inappropriate expenditures totaling $94,562 and inappropriate and unauthorized payroll payments totaling $341,992. She also did not maintain complete and accurate accounting records, provide financial reports to the board, file payroll reports or remit biweekly withholdings in a timely manner, resulting in approximately $5,000 in penalties and interest.
The board did not provide adequate financial oversight, obtain periodic financial reports, monitor the budget, investigate budget and revenue anomalies reported by the outside accountant, perform an effective claims audit or annually audit the former clerk-treasurer’s records. The board’s failure to fulfill its fiscal responsibilities created a negative “tone at the top” and a weak control environment that enabled the former clerk-treasurer to abuse her position for personal gain.
The board did not ensure the former clerk-treasurer accurately paid wages and leave benefits for the nine full-time individuals employed as of March 2023, and two that left employment during the audit period. The former clerk-treasurer overpaid employees and made inappropriate and unauthorized payments to herself and other employees totaling $341,992 and tried to pay herself an additional $26,613. She failed to adhere to the established policy and collective bargaining agreement regarding employees’ leave benefits.
Town of Lodi – Town Hall Capital Project (Seneca County)
The board did not adequately manage the Town Hall capital project, which included the renovation of a church into the new town hall and food pantry. The board did not develop or formally establish a total estimated project cost or provide an itemized project budget or detailed timeline. The board also did not oversee the competitive bidding process for the pantry portion of the project. The board and its contractors did not ensure that required permits were obtained and required inspections were performed throughout the project. Work associated with six change orders totaling $65,537 was completed without the board’s approval. The board further approved 17 payments totaling approximately $930,000 to construction contractors without adequate supporting documentation, such as a certification that the work was performed and completed according to contract terms.
Village of Herkimer – Payroll (Herkimer County)
Village officials paid salaries and wages as authorized but did not maintain adequate employee time records or ensure separation payments were accurate or adequately supported. Auditors found employees were paid for overtime that was not always adequately documented or consistent with their collective bargaining agreement (CBA). Direct supervisors also did not review or certify payroll registers, including employee names, hours worked, gross pay, deductions, and net pay, before officials and employees were paid, as required by law. Auditors reviewed pay and time records for 15 employees that were paid a total of $260,030. In general, salaries and wages were paid as authorized and employees’ hours were correctly entered into the payroll system. However, time records were not always prepared by the employees, signed by the employees, included the employees’ beginning and ending times, or reviewed by a supervisor. Auditors also identified three employees who retired from the village and received benefit payments totaling $128,254. While calculations were available for these employees to substantiate the cash payments and benefits each received, these calculations were not always consistent with the language in the applicable CBA or there was no individual employment agreement or local enactment to support the amounts paid. As a result, these employees received either questionable or unsupported separation payments and benefits totaling $73,877.
Ravena-Coeymans-Selkirk Central School District – Lead Testing and Reporting (Albany County)
District officials did not properly identify, report or implement needed remediation to reduce lead exposure in all potable water outlets as required by state law and Department of Health (DOH) regulations. Auditors determined 61 of the 322 (19%) water outlets identified at select areas were not sampled or properly exempted by district officials. This occurred because district officials did not have a sampling plan to identify all water outlets for sampling or exemption. District officials also did not have a remedial action plan that detailed which water outlets they exempted from sampling, how they would be secured against use, and what remedial actions were planned or occurred. Because there is no information on the lead levels of the 61 water outlets not sampled for testing, auditors were unable to determine whether officials identified and remediated all water outlets that would have required it.
Chazy Union Free School District – Lead Testing and Reporting (Clinton County)
District officials did not properly identify, report or implement needed remediation to reduce lead exposure in all potable water outlets as required by state law and DOH regulations. Auditors determined 115 of the 178 (65%) water outlets identified at select areas were not sampled or properly exempted. This occurred because district officials did not have a sampling plan or a remedial action plan. Because there is no information on the lead levels of the 115 water outlets not sampled for testing, auditors were unable to determine whether officials identified and remediated all water outlets that would have required it. Of the 46 water outlets that the district sampled and tested, 15 water outlets (33%) exceeded the lead action level. Although district officials took appropriate remedial actions by removing or replacing these 15 water outlets, these actions were not documented in a remedial action plan to show when these water outlets were taken out of service, how they were remediated if not replaced or removed, and when they were returned to service. District officials did not always report testing results properly or in the required time periods to all required parties.
Commack Union Free School District – Lead Testing and Reporting (Suffolk County)
District officials did not properly identify, report or implement needed remediation to reduce lead exposure in all potable water outlets as required by state law and DOH regulations. Auditors determined 20 water outlets (16 shower outlets and four bathroom outlets located in elementary school classrooms) of the 521 water outlets identified at select areas were not sampled or properly exempted. Auditors determined district officials did not review or update the sampling plan to identify all water outlets. Auditors also reviewed the test results for 40 of the 135 water outlets that exceeded the lead action level and determined the district did not effectively remediate 24 of the 40 water outlets. District officials did not properly report laboratory test results for testing conducted, including the results showing 135 of 765 (18%) water outlets were above the lead action level, within the required time periods or to all required parties. Test results identifying sampled water outlets with actionable lead levels were reported to the local health department an average of 18 days late, instead of one business day as required; and staff, parents and guardians were not notified of these results in writing, as required.
East Bloomfield Central School District – Lead Testing and Reporting (Ontario County)
District officials did not properly identify, report or implement needed remediation to reduce lead exposure in all potable water outlets as required by state law and DOH regulations. Auditors determined 95 of the 246 (39%) water outlets identified at select areas were not sampled or properly exempted. Because there is no information on the lead levels of the 95 water outlets not sampled for testing or properly exempted by the district, auditors were unable to determine whether officials identified and remediated all water outlets that would have required it. District officials did not include all water outlets in their sampling plan. Although the district’s remedial action plan specified the controls implemented for water outlets the district exempted, how they were secured against use and listed all water outlets that exceeded the lead action level, it did not contain enough detail to identify individual exempt outlets and not all implemented controls were considered effective by DOH guidance. Auditors found remediation efforts were not adequate for eight of the 31 water outlets (26%) that exceeded the lead action level. While district officials notified the local health department and staff, parents and guardians of the 31 water outlets exceeding the lead action level from the initial test results, they did not follow all of the requirements, among other issues.
Evergreen Charter School – Credit Card Purchases (Nassau County)
Credit card purchases were not always properly approved or adequately supported to show they were for a proper school purpose. The board of trustees and school officials did not develop and adopt a credit card policy or procedures for monitoring and using the school’s 13 credit cards that were assigned to 13 school officials. Auditors found 255 credit card charges totaling $113,589 were not properly approved or adequately supported. Twelve of the 18 general purpose credit card payments, totaling $134,982, did not have the required signatures for payment. Reward points were accumulated and used during the audit period but officials could not explain who used the points and for what purpose.