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May 03, 2024

New York State's Comptroller releases audits

On May 2, 2024, New York State Comptroller Thomas P. DiNapoli announced the following local government and school audits were issued.

Click on the text highlighted in COLOR below to access the full text of the audit report posted on the Internet.

 

Town of DeWitt – Planning and Zoning, and Recreation Departments’ Collections (Onondaga County)

Town officials did not effectively manage the planning and zoning, and recreation departments’ cash collections. As a result, auditors could not confirm that all collections received were deposited. Of the 40 planning and zoning department fees reviewed totaling $73,732, 18 were not in accordance with the board’s fee structure, and 16 were not deposited in a timely manner. Of the 463 recreation department fees reviewed totaling $56,262, 176 were not in accordance with the fee structure used. Of the 177 payments made with cash or check, 40 were not deposited in a timely manner. Department collection activities were not properly recorded or reviewed, and records were not always maintained. In addition, users could delete records from the financial system, and employee collection activities were not properly segregated. Employees were allowed personal use of town rentals at no charge, resulting in a loss of collectible town revenues.

 

Pembroke Central School District – Investment Program (Genesee County)

District officials did not develop and manage a comprehensive investment program. From Jan. 1, 2022 through April 30, 2023, the district earned investment earnings totaling over $153,000 from money on deposit in its 15 bank accounts at two financial institutions, which had an average of $13.4 million available for investing. Had officials considered other legally permissible investment options, the district may have earned approximately $390,000. District officials did not create, and the board did not adopt, a comprehensive investment program with written procedures for the investment of district funds. The district did not prepare monthly cash flow forecasts to estimate funds available for investment, monitor investments or formally solicit interest rate quotes.

 

Pembroke Central School District – Extra-Classroom Activity Funds (Genesee County)

District officials did not properly account for all extra-classroom activity (ECA) funds and, because some funds were held for substantial amounts of time before they were deposited, collections were not appropriately safeguarded. As a result, collections were not recorded and deposited in a timely manner, and unsupported disbursements were authorized and processed. As such, auditors could not determine whether all ECA funds were properly used.

 

Ticonderoga Joint Town/Village Fire District – Board Oversight (Essex County)

While the board monitored financial activity and ensured appropriate records were maintained, they did not ensure required annual audits were completed and annual update documents (AUD) were filed in a timely manner. The 2018 independent annual audit of the district’s records was completed 1,045 days late and as of Oct. 31, 2023, audits for 2019 through 2022 were not completed and were already between 1,220 and 124 days late. AUDs were filed as many as 1,257 days late. There was no independent verification that funds have been accounted for and transparency was diminished.

 

Village of Unadilla – Procurement (Otsego County)

Village officials did not always use a competitive process when purchasing goods or services, as required by state law or the village’s procurement policy. Of the 20 purchases reviewed totaling $469,283, village officials did not seek competition for 18 purchases totaling $440,056. By not seeking competition, the board has less assurance that the village obtained the most favorable terms and conditions in the best interest of its taxpayers. Competition was not sought for: any of the five purchases subject to competitive bidding requirements during the audit period totaling $314,619; 10 purchases totaling $57,898 which were subject to the procurement policy; and insurance coverage and professional services totaling $67,539.

 

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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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