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July 25, 2020

Audits released by the New York State Comptroller

The audits listed below were released by New York State Comptroller Thomas P. DiNapoli during the week ending July 24, 2020.

Click on the text highlighted in color to access the full report.

School Districts:

Liverpool Central School District – Information Technology (IT) Assets (Onondaga County) District officials did not maintain complete and accurate hardware or software inventory records and did not perform comprehensive inventory counts. Auditors’ review of 529 purchased items, totaling about $448,000, found that 123 items, totaling $76,425, were not recorded in the district’s inventory records. Officials could not locate three of the 48 IT items auditors tested: a laptop and two cameras, totaling $1,444. In addition, the last comprehensive physical inventory count was conducted in 2003.

Putnam Central School District – Fund Balance Management (Washington County) The district’s surplus fund balance exceeded the statutory limit by 32.7 to 42.8 percentage points at the end of the last three fiscal years. Auditors determined appropriations were consistently overestimated resulting in increasing fund balance levels. The district did not use all of the fund balance appropriated to finance operations for fiscal years 2016-17 through 2018-19. The board has not adopted an adequate multiyear financial plan.

Wyandanch Union Free School District – Budget Review (Suffolk County) Significant estimated revenues and budgeted expenditures in the $71.7 million adopted budget for the 2020-21 fiscal year are not reasonable. District officials were unable to produce sufficient documentation that their appropriations for employee benefits, the re-institution of athletics program, and certain utilities are adequate. Additionally, overtime costs will need to be monitored closely to ensure they do not exceed budgeted appropriations. Consequently, the 2020-21 appropriations may be underbudgeted by at least $2.7 million. The district may not have sufficient resources to meet its financial obligations unless the superintendent and board implement budget cuts in the 2020-21 budget.


Local government audits:

Village of Arkport – Water Fund Financial Operations (Steuben County) Auditors found complete and accurate accounting records were not maintained, the modified accrual basis of accounting was not used and interfund activity was not properly reported. As a result, the board could not adequately monitor the water fund’s financial operations. The board did not properly segregate water billing and collection duties or establish compensating controls. In addition, late penalties were not properly assessed on unpaid water bills.

Cortlandville Fire District – Credit Cards (Cortland County) The board did not ensure that certain credit card charges were supported, for appropriate purposes or paid timely. In addition, the board approved credit card charges totaling $18,124 without adequate supporting documentation. The district also incurred penalty charges totaling approximately $390 for late payments and $190 for interest.

Hudson Housing Authority – Information Technology (IT) (Columbia County) Authority officials did not ensure that IT systems were adequately secured and protected against unauthorized use, access and loss. The board did not adopt an acceptable use policy, and officials did not provide IT security awareness training. In addition, the authority did not have adequate online banking agreements.

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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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