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November 15, 2015

Selected Reports issued by the Office of the State Comptroller during the week ending November 13, 2015



Selected Reports issued by the Office of the State Comptroller during the week ending November 13, 2015
Click on text highlighted in color to access the full report

School DistrictAudits

Chatham CSD – Financial Condition
The district realized operating surpluses because the board overestimated expenditures when developing budgets. The district has not established a formal plan stating how much will be set aside in each reserve, how each reserve will be funded or when reserve funds are to be used.

Cherry Valley-Springfield CSD – School Lunch Operations
The district is serving nutritious meals to its students. However, the meals cost more to prepare than the revenue generated by the meal sales.

Edmeston CSD – School Lunch Operations
The district serves nutritious meals to its students and cafeteria staff produce the meals in a productive manner. However, meals cost more to prepare than the revenue generated by the meal sales.

Kenmore-Town of Tanawanda UFSD - Financial Management
The district consistently appropriated fund balance that was not needed to finance operations. In addition, the district overfunded three reserves by approximately $5.6 million, incorrectly recognized $1.2 million in liabilities and accumulated $905,606 in the debt reserve as of June 30, 2014.

Penfied CSD – Financial Management
The district adopted budgets with overestimated expenditures and appropriated fund balance to finance operations that was not actually used. As of June 30, 2015, two reserves with balances totaling approximately $8 million are overfunded and potentially unnecessary. The school lunch fund’s total fund balance exceeds the federally regulated limit by more than $45,000.


Municipal Audits

Town of Deerpark – Budget Review
The significant revenue and expenditure projections in the preliminary budget are reasonable. However, the continued reliance on appropriated fund balance to fund town operations will eventually deplete fund balance and adversely affect the town’s financial condition. The town’s 2016 proposed budget complies with the property tax cap levy limit.

Town of East Hampton – Budget Review
The significant revenue and expenditure projections in the tentative budget are reasonable. The town’s 2016 tentative budget complies with the property tax cap levy limit.

Village of East Hampton – Information Technology
The board has not adopted written computer-related policies to address user access, remote access, password security and management, or data backups. Additionally, village officials improperly assigned administrative privileges, created generic user accounts and provided excessive access rights to the village’s financial and real property tax software.

Halfmoon Hillcrest Volunteer Fire Company – Financial Operations
The former treasurer did not maintain appropriate, accurate, complete or timely financial records and reports. The board did not perform an audit of the treasurer’s records for the 2011, 2012 and 2013 fiscal years until April 2014.

Jamison Road Volunteer Fire Company, Inc. –Internal Controls Over Financial Operations
The board generally did not provide adequate oversight of company financial activities to ensure that resources are safeguarded. The treasurer did not obtain board and membership approval for all bills before paying them and did not retain adequate supporting documentation to demonstrate that all purchases were for a valid company purpose.

City of Lockport – Budget Review
The city has three different contracts with employee unions which have expired and has not included the potential financial impact of contract settlements in the proposed budget. The water rent revenue estimate could be overstated by approximately $400,000. The common council has indicated it will adopt a local law to override the tax levy limit in 2016.

Rockland County – Budget Review
The significant revenue and expenditure projections in the proposed budget are reasonable. However, the county will need to closely monitor revenue associated with the sale of real property and chargebacks to other local governments. If this revenue is not realized, officials will either have to find another revenue sources or reduce appropriations accordingly. The county’s proposed budget exceeds the tax levy limit. The Legislature must pass a local law overriding the tax levy limit before adopting the proposed budget.

City of Troy – Budget Review
The proposed budget, while generally reasonable, needs improvement to make it a better tool for prudently managing the city’s resources. For example, the city’s proposed budget includes estimated revenues related to the sale of real property, franchise fees, sales tax and advanced life support charges which may not be realized. The city’s proposed real property tax levy is not in compliance with its tax levy limit and officials have not adopted a local law to override the limit.

Village of Victor – Financial Management
The board needs to improve its oversight and management of the village’s budgeting and financial operations. The board has not adopted policies and procedures governing the budget process or a fund balance policy establishing the level of fund balance to maintain.

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NYPPL Blogger Harvey Randall served as Principal Attorney, New York State Department of Civil Service; Director of Personnel, SUNY Central Administration; Director of Research, Governor’s Office of Employee Relations; and Staff Judge Advocate General, New York Guard. Consistent with the Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations, the material posted to this blog is presented with the understanding that neither the publisher nor NYPPL and, or, its staff and contributors are providing legal advice to the reader and in the event legal or other expert assistance is needed, the reader is urged to seek such advice from a knowledgeable professional.
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