ARTIFICIAL INTELLIGENCE [AI] IS NOT USED, IN WHOLE OR IN PART, IN PREPARING NYPPL SUMMARIES OF JUDICIAL AND QUASI-JUDICIAL DECISIONS

December 03, 2024

New York State Comptroller Thomas P. DiNapoli releases Municipal and School District audits

On December 2, 2024, New York State Comptroller Thomas P. DiNapoli announced the following municipal and school audits were posted on the Internet 

Click on the text highlighted in color to access the text of the item posted.

Town of Oxford – Procurement (Oswego County)  Town officials did not always use a competitive process when purchasing goods or services, as required. Of the purchases totaling $1.7 million reviewed, town officials did not seek competition for purchases totaling $848,783. As a result, the board did not ensure that the town obtained the most favorable terms in the best interests of its taxpayers.


Randolph Academy Union Free School District – Capital Asset Inventory Records (Cattaraugus County)  District officials did not maintain complete and accurate capital asset inventory records. The superintendent was responsible for maintaining these records but was unfamiliar with the requirements of, and did not comply with, the district’s capital asset policy. As a result, of the 90 capital assets with a total cost of approximately $93,000 that were selected for review - four laptop computers with a purchase cost totaling approximately $2,000 could not be located, and five capital assets with a purchase cost totaling approximately $3,000, including a gaming laptop, a karaoke machine and noise canceling headphones, were not included on the inventory records, making them more susceptible to theft.


Oakfield-Alabama Central School District – Procurement (Genesee County)  District officials did not always comply with state law or the district’s procurement policy and supplemental procedures when procuring goods and services. Of the 62 purchases totaling $4.9 million that were tested, district officials did not have evidence that goods and services totaling $930,806 were competitively procured. As a result, there is an increased risk that goods and services were not obtained at a favorable cost.


Town of Volney – Financial Operations Oversight (Oswego County)  The supervisor did not perform his financial responsibilities, and the board did not provide adequate oversight of financial operations. As a result, the town may have levied more taxes than necessary. Specifically, the supervisor did not maintain financial accounting records or present records to the board for audit as required by state law. Because of this, the board was unable to monitor the town’s overall finances or conduct required annual audits. The board also adopted budgets for fiscal years 2023 and 2024 that were not based on prior-year results of operations. In addition, transparency was impaired because the town’s 2021, 2022 and 2023 Annual Financial Reports were not filed with the Office of the State Comptroller.


Village of Sloan – Clerk-Treasurer (Erie County)  Although the clerk-treasurer generally recorded financial transactions accurately, transactions were not always recorded in a timely manner. The clerk-treasurer also did not provide timely or accurate financial reports to the board. As a result, the board may have made financial decisions with inaccurate and out-of-date financial information. Auditors also found the cash balances reported on the monthly treasurer’s reports that were provided to the board approximately six weeks after month-end were not accurate. Had the clerk-treasurer performed and the board reviewed bank reconciliations, these inaccuracies would have been identified and corrected.


City of Newburgh – Budget Review (Orange County)  The city’s use of approximately $3.2 million of fund balance to close gaps in the budget decreases the fund balance that is available to cover unforeseen circumstances. The city should refrain from including the additional $1.5 million revenue and corresponding expenditures in its 2025 adopted budget for the New York State Touring Route Program because there is no assurance the state will appropriate additional money for this program in fiscal year 2025-26. The city could potentially face a shortfall of $1.2 million in metered water revenue and $752,730 in sewer usage revenue if revenue estimates are not realized. The city has budgeted $23.9 million for personnel services in the general fund. However, the city’s proposed budget includes a reduction of $3.7 million in the general fund for a “vacancy factor,” a budgeting technique used by the city to account for open personnel positions, which may not be prudent, as it leaves personnel services appropriations with insufficient amounts to cover expenditures. Auditors found the appropriations for personnel services are likely underestimated by as much as $3.7 million. In addition, budgeted funding for police overtime of $748,605 is likely underestimated by at least $982,269. The proposed budget does not include a contingency appropriation in the general fund. Nor does it include a tax overlay, which could potentially create a revenue shortfall in 2025. Finally, the proposed budget includes a tax levy of $24.5 million, which is $115,087 from exceeding the tax levy limit.  


Jefferson County Industrial Development Agency (JCIDA) – Audit Follow-Up  The JCIDA has demonstrated minimal progress implementing recommendations in an audit report released in October 2020. Of the five audit recommendations, one recommendation was fully implemented, two recommendations were partially implemented, and two recommendations were not implemented.

###

CAUTION

Subsequent court and administrative rulings, or changes to laws, rules and regulations may have modified or clarified or vacated or reversed the decisions summarized here. Accordingly, these summaries should be Shepardized® or otherwise checked to make certain that the most recent information is being considered by the reader.
THE MATERIAL ON THIS WEBSITE IS FOR INFORMATION ONLY. AGAIN, CHANGES IN LAWS, RULES, REGULATIONS AND NEW COURT AND ADMINISTRATIVE DECISIONS MAY AFFECT THE ACCURACY OF THE INFORMATION PROVIDED IN THIS LAWBLOG. THE MATERIAL PRESENTED IS NOT LEGAL ADVICE AND THE USE OF ANY MATERIAL POSTED ON THIS WEBSITE, OR CORRESPONDENCE CONCERNING SUCH MATERIAL, DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP.
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.
New York Public Personnel Law. Email: publications@nycap.rr.com