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August 11, 2023

Municipal and School Audits released by New York State Comptroller

On August 11, 2023 New York State Comptroller Thomas P. DiNapoli announced the following local government and school audits were issued.

 

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

 

Town of Ticonderoga – Capital Project Management (Essex County)

The board did not provide adequate oversight and management of capital projects. Town officials did not monitor activity for eight projects reviewed (with board-authorized budgets totaling $20.8 million) to ensure that costs were kept within the authorized budget. In addition, budget modifications totaling $3.2 million were not recorded in the accounting records.

 

Town of White Creek – Disbursements and Annual Financial Reports (Washington County)

The supervisor did not provide proper oversight of disbursements or ensure the required annual update documents (AUD) were filed in a timely manner. Auditors reviewed 199 disbursements totaling $516,716 and determined the supervisor did not review any of the disbursements to ensure they were accurate and made for appropriate purposes and did not authorize the 44 electronic fund transfers or sign the 155 checks. Instead of signing the checks, a rubber signature stamp was used, which is not permitted. The supervisor also did not review canceled check images to ensure they agreed to the board-approved abstract.

 

Brocton Central School District – Financial Management (Chautauqua County)

The board and district officials did not properly manage fund balance and reserves. The board and officials overestimated budgetary appropriations by an annual average of $1.3 million (8%) and allowed surplus fund balance to exceed the statutory limit as of June 30, 2022 by 7 percentage points, or $1.2 million. They also could not demonstrate that six reserves with balances totaling more than $2.2 million were funded or used as management intended and did not establish an adequate reserve fund policy or develop annual reserve reports.

 

Clarendon Fire Company – Financial Activities (Orleans County)

The treasurer did not provide the board with sufficient information to monitor the company’s financial activity and company officials did not always provide the treasurer with sufficient information to record financial transactions. The treasurer was not trained or made aware of his financial reporting duties and requirements. Officials also did not maintain adequate supporting documentation for cash receipts, and fundraising cash receipts, totaling $86,208, were not reported to the board, as required. Auditors found credit card payments, totaling $24,552, that were not properly supported, recorded, or reported and the treasurer paid credit card bills late. As a result, the company incurred late fees and interest charges, totaling $1,157.

 

Brocton Central School District – Claims Audit (Chatauqua County)

Auditors found that claims were not properly audited before payment. As a result, there was an increased risk that improper or unsupported payments could have been made and may not have been detected and corrected. The board did not provide the claims auditor with adequate guidance to perform her duties, leading auditors to find that of the 184 claims reviewed totaling $1.9 million, 100 claims totaling approximately $141,000 should not have been approved for payment because they had one or more exceptions.

 

Morris Central School District – Fund Balance Management (Otsego County)

The board and district officials did not effectively manage the district’s fund balance. The board overestimated appropriations from the 2019-20 through 2021-22 fiscal years by an average of $617,000, or 6%. In addition, surplus fund balance exceeded the 4% statutory limit in all three fiscal years by approximately $1.1 million (10.1 percentage points) to $2 million (21 percentage points) and four of the district’s 10 reserves were not reasonably funded, or used to pay related expenditures, during the three fiscal years. For example, the balance of $508,923 in the retirement contribution for employees reserve was sufficient to cover expenditures for at least four years.

 

Village of Canaseraga – Claims Audit (Allegany County)

Although the 300 claims auditors reviewed were for appropriate village purposes, certain claims were not adequately supported or properly audited and approved before payment. Of the 300 claims reviewed totaling approximately $758,000, 205 (68%) claims totaling approximately $656,000 had one or more exceptions and should not have been approved for payment. Auditors found that: claims totaling approximately $588,000 were paid without evidence of being audited or reviewed by the board, claims totaling approximately $114,000 were paid prior to scheduled monthly board meetings and were not audited prior to payment, claims totaling approximately $24,000 did not have departmental approval, and 20 claims totaling approximately $4,400 were not mathematically accurate when paid. In addition, board members did not know what their claims audit responsibilities were, nor did they take training to learn what their claims audit responsibilities were.

 

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