Local government and school audits were issued issued

On September 9, 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 to access the audit report.

Hammondsport Central School District – Multiyear Planning (Steuben County) District officials did not develop comprehensive written multiyear financial and capital plans. Their budgeting practice of consistently appropriating $1.4 million in fund balance over three fiscal years is, in effect, a reservation of fund balance that is not allowed by statute and a circumvention of the 4% surplus fund statutory limit. As a result, district officials maintained surplus fund balance levels at more than three times the amount allowed by state law. Auditors also found five reserves totaling $2.3 million had balances in excess of the district’s needs. In addition, while district officials prepared an annual reserve and fund balance plan each January, the plan lacked key pieces of information required by the board’s reserve policy and best practices.

Hammondsport Central School District – Investment Program (Steuben County) The board and district officials did not develop and manage a comprehensive investment program. From July 1, 2022 through Feb. 29, 2024, the district earned $321,190 from its 37 interest bearing bank accounts and 27 certificates of deposit. Had officials considered alternative legally permissible investment options, the district may have earned $738,137. District officials did not create, and the board did not adopt, a comprehensive investment program with written procedures for the investment of district funds or prepare monthly cash flow forecasts to estimate funds available for investment. The board also did not formally solicit interest rate quotes or annually review and re-adopt the investment policy as required by state law.

Town of Berkshire – Board Oversight (Tioga County) Town officials did not ensure non-payroll disbursements were for appropriate town purposes. The board did not segregate disbursement duties, approve all claims or require adequate supporting documentation for 59 claims totaling $51,519, or establish procedures to detect and prevent duplicate payments. In fact, auditors identified $12,465 in duplicate payments. In addition, the board did not annually audit the supervisor’s records and reports or ensure annual financial documents were filed, as required.

Greenburgh Central School District – Tax Certiorari Reserve (Westchester County) The board properly established the tax certiorari reserve fund and maintained it at a reasonable level. However, the treasurer did not adequately track tax certiorari judgments or maintain reliable records, such as a complete and accurate listing of all outstanding tax certiorari cases, which was also noted in a prior audit. The treasurer also did not provide the board with an annual report of all of the district’s reserve funds as required by district policy. Without adequate and reliable records and reporting, the board and district officials have no assurance that the amount in the tax certiorari reserve fund is reasonable or necessary.

Town of Wells – Records and Reports (Hamilton County) The supervisor did not maintain complete, accurate and timely accounting records, and inadequate financial reports were provided to the board. As a result, the board lacked reliable records and reports to manage the town’s financial operations. All nine balance sheet accounts for 2022 and six accounts for 2023 were not accurate. Two accounts were overstated by a combined total of $1.4 million and 13 accounts were understated by a combined total of $451,664. Of the 10 revenue accounts reviewed as of Dec. 31, 2022 and Dec. 31, 2023, two accounts were overstated by a total of $22,987 and two were understated by a total of $7,642. Of the 10 expenditure accounts reviewed as of Dec. 31, 2022 and Dec. 31, 2023, three accounts were overstated by $21,392 and three were understated by $47,964. Auditors also found bank reconciliations were not always performed. As a result, adjusted bank balances did not agree with general ledger cash balances at month-end for 18 of the 40 bank reconciliations auditors performed.

Westchester County – Court and Trust Funds  Pursuant to a court order, certain assets may be provided to the court and then delivered to the commissioner of finance for safekeeping. The commissioner generally established adequate procedures, maintained appropriate records, and properly reported court and trust funds. However, auditors identified $203,279 that improperly remained in the commissioner’s custody that should have been turned over to the Office of the State Comptroller as abandoned property.