York State Comptroller Thomas P. DiNapoli announced the audits listed below for
School Districts and Municipalities were issued during
the week ending August 5, 2022:
Click on the text highlighted in color to access the complete audit report.
District officials did not always seek
competition for professional services in accordance with district policy. As a
result, services may not have been procured in the most economical manner and
in the best interest of the taxpayers. District officials paid $1.2 million to
six professional service providers without seeking competition and used a
request for proposals (RFP) process to select certain professional service
providers many years ago but did not seek new competition. Officials paid $2.1
million to six professional service providers who were selected based on RFPs
issued in 2013 and 2014.
District officials did not establish
adequate controls over user accounts and software updates to help prevent
against unauthorized use, access and loss. In addition, officials did not
periodically review all network user accounts and permissions. Auditors found
58 network user accounts had unnecessary administrative permissions and 111
network user accounts were unneeded and should have been disabled. Officials
also did not adopt an adequate comprehensive information technology contingency
plan to minimize the risk of data loss or prevent a serious interruption of
The board did not provide adequate
oversight of financial operations. Specifically, the board did not establish
compensation controls to address the lack of segregation of the treasurer’s
duties. The board also did not request or receive adequate monthly reports from
the treasurer to adequately monitor operations, ensure bank reconciliations
were properly prepared, retained and reviewed or ensure all claims paid in
advance were for allowable purposes.
of Waterloo – Financial Management (Seneca County)
The board and supervisor did not
effectively manage the town’s financial operations, and were unaware of the
town’s true financial position, because the supervisor did not maintain
accurate accounting records and reports. In addition, the board did not
implement adequate corrective action to address prior audit findings and
recommendations, which prolonged significant deficiencies, such as inadequate
financial policies, procedures, records and reports. The board also did not
conduct, or contract for, an annual audit of the supervisor’s records or
establish written multiyear financial and capital plans to adequately manage
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New York State Comptroller
Thomas P. DiNapoli also reported that a former Village of Sherman treasurer was arrested for an alleged theft of $20,000 of town funds, noting that
residents’ cash tax payments were then spent at Dollar General, Walmart, QVC and Amazon.
Former Village of Sherman
Treasurer Ann Gilbert faces felony charges for the alleged theft of more than
$20,000 in cash paid by residents from 2012 to 2016 for village sewer, water
and taxes, according to an investigation by State Comptroller Thomas P.
DiNapoli, the Chautauqua County District Attorney Jason Schmidt and the
Chautauqua County Sheriff’s Office. Gilbert, 54, who now resides in Florida, was charged with grand larceny in the third degree.*
Gilbert allegedly betrayed her neighbors by pocketing tax payments to pay her
personal expenses,” DiNapoli said. “I thank District Attorney Schmidt and the
Chautauqua County Sheriff’s Office for partnering with my office to hold her
is not a victimless crime,” District Attorney Schmidt said. “The Village of Sherman, like
many of our local municipalities here in Chautauqua County, is
engaged in an every-day battle to service its residents with precious little
money. Every dollar stolen is a dollar not spent on the community. No one
should use their public office for personal gain.”
Gilbert allegedly embezzled village funds to pay for her personal utility bills
and purchases from QVC, Dollar General, Walmart, Amazon and Pampered Chef.
conceal her crimes, she stopped recording cash village tax payments and,
instead, pocketed the money. After the Village of Sherman’s Mayor
Colleen Meeder discovered Gilbert’s alleged acts of "jobbery"**, she
reported them to the State Comptroller and the District Attorney who commenced
an investigation. Gilbert was the village treasurer from June 2007 until August
April 22, 2022, the State Comptroller’s Office released an audit
detailing financial mismanagement of cash receipts and making recommendations
for improved internal controls.
was arrested today pending arraignment in Chautauqua
County Court before Judge Marilyn Gerace.
arrest was a result of a joint investigation between the State Comptroller’s
Office, the Chautauqua County District Attorney’s Office and the Chautauqua
County Sheriff’s Office.
charges against the defendant are merely accusations and the defendant is
presumed innocent until and unless proven guilty in a court of law.
As noted in previous NYPPL reports of such alleged acts of such
misconduct, there is a term for such breaches of the public trust,
"jobbery." Mirriam-Webster defines jobbery as "the improper use of
public office or conduct of public business for private gain".
taking office in 2007, DiNapoli has committed to fighting public corruption and
encourages the public to help fight fraud and abuse. New Yorkers can report
allegations of fraud involving taxpayer money by calling the toll-free Fraud
Hotline at 1-888-672-4555, by filing a complaint online at firstname.lastname@example.org or by mailing a complaint
to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110
State St., Albany, NY 12236.