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June 06, 2020

Audits by New York State Comptroller Thomas P. DiNapoli issued during the week ending June 5, 2020

New York State Comptroller Thomas P. DiNapoli announced the following local government audits were issued during the week ending June 5, 2020. 

Click on the text typed in color to access the full text of the audit.

Office of Addiction Services and Supports (OASAS): Oversight of Drug Disposal (2018-S-64) Overall, OASAS addiction treatment centers and OASAS-certified providers have met the regulatory requirements for collecting and disposing of unneeded drugs. However, there are improvement opportunities in some of their pharmaceutical management practices. While some of the sampled providers had effective controls over the drug disposal process, which followed the regulations and were environmentally friendly, others did not use environmentally sound methods of disposal whenever possible.

Division of State Police: Processing of Sexual Offense Evidence Collection Kits (2019-S-44) From Nov. 28, 2017 to Oct. 31, 2019, the state police processed 1,656 kits. Only 356 of the 1,656 kits (21 percent) were completed within the time frames prescribed by law. As of Oct. 31, 2019, state police had 1,916 kits that needed to be processed, and as of that date, the required processing time frame had elapsed for 1,681 kits (88 percent).

Department of Taxation and Finance: Collection of Petroleum Business Tax and Motor Fuel Excise Tax (2018-S-28) Diesel and motor fuel distributors may be required to provide collateral security in an amount provided for in statute or determined by the department. Distributors whose combined tax liability exceeds $5 million for the department’s reference period must enroll in its PrompTax electronic filing and payment program and prepay a portion of each month’s tax liability. Auditors found the department does not review distributors’ existing collateral security amounts to determine if they continue to be appropriate and identified distributors that were not enrolled in PrompTax and were not prepaying their tax liability as required.

Office of Temporary and Disability Assistance: National Directory of New Hires Data Security (2019-S-67) The office has taken actions to comply with the federal requirements for securing directory data. Auditors found that the office is fully compliant with 30 of the 32 requirements; the remaining two requirements were found to be not applicable.

Islip Fire District – Financial Condition (Suffolk County) The board did not effectively monitor expenditures and fund balance. As a result, the unrestricted fund balance deficit increased to as much as $171,492 during the audit period. Auditors also determined that the board did not properly plan for the funding of and spending from reserves. In addition, the board transferred unavailable funds to its capital reserves, and expended funds from reserves without adequate public notice; for example, transfers to reserves totaling $593,941 and expenditures from reserves totaling $841,477 that were not included in the budgets.

Sodus Center Fire District – Board Oversight (Wayne County) The board maintained a lax control environment and did not carry out its responsibility to oversee district financial operations and safeguard district assets. Auditors determined that the board allowed the treasurer to perform all key aspects of district financial operations without providing independent oversight.

City of Long Beach – Budget Review (Nassau County) Significant revenue and expenditure projections in the proposed budget are reasonable.      
Although the city appears to have budgeted sufficiently for termination salary payments for the 2020-21 fiscal year, auditors caution the city that its continued practice of borrowing to fund these operating costs is not fiscally prudent. The city has improved its projections for overtime costs in certain departments. However, it does not appear that the total appropriation will be sufficient. The city’s proposed budget includes a tax levy of $46.6 million which is $4,136 above the limit established by law.

Mottville Fire District – Budgeting and Financial Recordkeeping (Onondaga County) The board’s budgets were incomplete because the real property tax levy and a schedule of other estimated revenues were not included. Auditors also determined that the board did not adopt a fund balance policy or establish targeted funding levels for its reserve funds. In addition, the treasurer did not maintain accurate and reliable accounting records.

Rockland County – Sale of Estate Real Property The Office of Public Administrator (PA) guidelines regarding the sale of estate real property state that the PA shall determine fair market value and sell all real property or cooperative apartments at public auction or by private sale at the highest and best price available. Auditors determined that the administrator did not always get a professional appraisal for estate houses before listing them for sale.

Town of Smithville - Annual and Claims Auditing (Chenango County) The board did not annually audit the records of the supervisor or town clerk. Auditors also found that the board did not perform a deliberate and thorough audit of claims.

Wyoming County Court and Trust Funds The records maintained by the treasurer were not complete. Auditors found two actions, totaling $30,455, in the treasurer’s custody that were not recorded on the annual report sent to the State Comptroller’s Office as required. In addition, auditors identified one action for $28,204.84 that improperly remained in the treasurer’s custody that should have been turned over to the State Comptroller as abandoned property

City of Yonkers – Budget Review (Westchester County) Under the proposed budget, the city will have exhausted 80.1 percent of its constitutional tax limit. Auditors caution the city that if property values do not increase, its ability to increase taxes may be reduced in future years.

Town of Yorktown - Information Technology (Westchester County) Personal internet use was found on computers assigned to 10 employees, including four who routinely accessed personal, private and sensitive information (PPSI). Auditors found town officials did not adequately manage user accounts. In addition, the board did not develop a disaster recovery plan. Sensitive information technology (IT) control weaknesses were communicated confidentially to officials.

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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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