On May 120, 2024, New York State Comptroller Thomas P. DiNapoli announced the following municipal audits were issued.
Click on the text highlighted in COLOR to access the complete audit report posted on the Internet.
Town of Throop – Oversight of the Supervisor’s Cash Collections and Disbursements (Cayuga County)
The
former supervisor did not properly collect and disburse cash assets in his
custody, nor did the board ensure the supervisor properly performed these
duties. The audit found $15,823 in missing funds. Auditors also determined that
the former supervisor was inappropriately reimbursed $1,526 for expenditures on
the town’s credit card and did not deposit five cash receipts totaling $22,464
intact, which could indicate cash was diverted. He routinely circumvented the
approval process by manually writing checks using a typewriter and blank check
stock and disbursed 106 payments totaling $782,518 prior to board approval. He
also kept a town computer used to record cash transactions after leaving
office. The computer was eventually returned; however, all data had been erased
prior to its return. In January 2024, the former supervisor was arrested for
stealing town funds and pleaded guilty to grand larceny in the fourth degree
and official misconduct. The former supervisor was sentenced in February 2024. He paid full
restitution of nearly $11,000 and was barred from seeking public office again.
Town of Throop – Highway Department
The
board and superintendent did not agree, in writing, to expenditures for highway
repair and improvement as required. As a result, the board’s ability to
sufficiently plan and budget for long-term road maintenance was diminished.
They also did not enter into written shared service agreements for projects
conducted with surrounding towns or maintain records to track the costs related
to these services to ensure taxpayer equity. The superintendent did not
maintain a complete and up-to-date equipment inventory. Therefore, the board
may not be able to sufficiently plan and budget for the replacement of highway
equipment and there is an increased risk of equipment loss and misuse.
Additionally, the supervisor did not retain documentation related to scrap
metal sales or account for sales totaling $1,277.
The
board did not always ensure that officials solicited competition for purchases
subject to competitive bidding or for professional services. Competitive
bidding requirements were not followed for 72 purchases totaling $887,952 of
the 180 purchases reviewed and competition was not sought for professional
services from seven providers totaling $595,996 – 99% of the $601,037 total
services obtained from eight vendors.
Village of Horseheads – Claims Auditing and
Disbursements (Chemung County)
Based
on our sample of $1.1 million in claims and disbursements reviewed, village
officials did not properly audit all claims or authorize disbursements. As a
result, payments were made for unsupported, duplicate and improper claims.
Village officials did not ensure an independent review of parks and recreation
department claims occurred or ensure all claims contained adequate supporting
documentation for 140 purchases totaling $44,547. They also did not ensure the
village’s procurement policy was followed for three purchases totaling $19,179,
or document whether claims were audited prior to funds being disbursed.
Unnecessary telephone and internet services resulted in expenditures of $5,406.
The State Comptroller’s office commenced a separate investigation into the
possible misappropriation of village funds. In August 2023, the assistant clerk was arrested on
charges of grand larceny and corrupting the government. In March 2024, the
clerk pleaded guilty to attempted petit larceny and paid full restitution.
Village of Horseheads – Collections
Village
officials did not properly record or deposit all collections in a timely
manner. Officials did not reconcile departmental records with village records,
utilize records that could verify deposits were made intact, complete timely
bank reconciliations, or perform annual audits. Auditors determined code
enforcement officers did not accurately record collections totaling $1,804 and
cemetery department collections and code enforcement permit collections
totaling $71,992 were deposited an average of 15 and 21 days late,
respectively. In addition, code enforcement cash collections totaling $150 were
not deposited until auditors identified the discrepancy. Lastly, the board did
not comply with the state law requiring the board to annually audit the
clerk-treasurer’s records and reports. The last audit was conducted in 2018.
City of Long Beach – Budget Review (Nassau County)
Auditors
found that the significant revenue and expenditure projections in the 2024-25
proposed budget are reasonable. The proposed budget includes revenue estimates
for metered water sales of $5.6 million and sewer rent estimates of $5 million
based on rate changes which the city council has not yet authorized. Unless the
rate changes are authorized and made in a timely manner, water and sewer fund
budgets should be modified accordingly. The city’s proposed budget includes a
tax levy of $60.1 million, which is within the limit established by law.
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