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November 21, 2020

Audits issued by the New York State Comptroller during the week ending November 20, 2020

New York State Comptroller Thomas P. DiNapoli announced the following municipal and school district audits were issued during the week ending November 20, 2020.

Click on the text highlighted in color to access the complete audit report.

MUNICIPAL AUDITS

Village of Fort Plain – Leave Benefits (Montgomery County) Village officials did not establish appropriate controls over employee leave time. Auditors found the board did not establish comprehensive leave benefit policies and procedures. Officials also did not accurately maintain employee leave records. Leave used and compensatory time (comp time) earned was not always properly recorded or supported by village records. As a result, 133 hours of accrued comp time, valued at approximately $4,600, was not supported by an employee’s time and attendance records. In addition, 33 hours of comp time and eight hours of personal time, valued at approximately $900, were used but not deducted from employee leave records.

Town of Locke – Financial Condition (Cayuga County) The board did not effectively manage the town’s financial condition. As a result, it levied more taxes than necessary to sustain operations. The board also did not adopt budgets with sound estimates, nor did it monitor budgetary results during the year. In addition, unrestricted fund balances as of December 31, 2019 in the general and highway funds and water district were excessive, ranging from 89 percent to 536 percent of actual expenditures. The board did not adopt formal fund balance, reserve and budgeting policies, along with multiyear financial and capital plans.

City of Newburgh – Budget Review (Orange County) The city’s proposed budget includes appropriations of $67,066,159. The city’s use of approximately $4.6 million of fund balance to close gaps in the budget decreases the fund balance that is available to cover unforeseen circumstances. The city could potentially face shortfalls based on revenue estimates for sales and use tax.

Town of Palermo – Procurement and Fuel Inventory (Oswego County) Town officials did not always use competitive methods when procuring goods and services or properly account for and monitor diesel and gasoline fuel. Town officials purchased $299,298 in goods and services that should have been competitively procured, however, $101,121 was purchased without competition. Town officials also overpaid a vendor by almost $2,500.

Rockland County– Budget Review The significant revenue and expenditure projections in the proposed budget are reasonable. The review considered county officials’ projections in response to the potential impact of the COVID-19 pandemic. The county’s proposed budget includes a tax levy of $146,052,165.


 SCHOOL DISTRICT AUDITS

Fayetteville-Manlius Central School District – Professional Services (Madison County and Onondaga County) District officials appropriately sought competition through requests for proposals or quotes for professional services totaling approximately $4.3 million (93 percent) of those reviewed. The district had written agreements with 18 of 19 professional service providers and payments were made in accordance with the terms of the agreements.

Tioga Central School District – Cash Management (Tioga County) Interest earnings were not maximized. District officials did not develop and manage a comprehensive investment program or comply with the district’s investment policy. Had officials invested available funds in a financial institution with higher interest rates, the district’s interest earnings could have increased by $215,120.

Tioga Central School District – Health Insurance and Special Education Cost Savings (Tioga County) District officials could achieve cost savings by offering an acceptable health insurance buyout incentive in lieu of health insurance coverage. Savings could range between approximately $10,000 and $251,000. District officials could also save approximately $43,500 by providing select special education programs in-house.

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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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