On December 31, 2024 New York State Comptroller Thomas P. DiNapoli issued the following local government and school audits.
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Gowanda Central School District – Financial Management (Erie County) The board and district officials did not properly manage fund balance and reserve accounts. The board and district officials’ budgeting practices were not transparent and resulted in the district exceeding the statutory limit on surplus fund balance by $4.5 million, and missing opportunities to lower real property taxes. The board and district officials consistently overestimated general fund appropriations from 2020-21 through 2022-23 by a total of $13.1 million and appropriated nearly $6.7 million of fund balance that was not needed or used. Adopted annual budgets during the same period gave the impression that the district would have operating deficits totaling $6.7 million when it actually had operating surpluses totaling $9.9 million. The district also overfunded the employee benefit accrued liability and unemployment reserves by nearly $1.9 million and did not use funds held in six reserves with balances totaling $10 million.
Orleans County – Court and Trust Funds Pursuant to a court order, certain assets may be provided to the court and then delivered to the county treasurer for safekeeping. Auditors identified one action totaling $2,382.66 that was not properly turned over to the State Comptroller. The treasurer stated that she did not turn over the money because the action was still pending in court. However, the money had been in the treasurer’s custody for over three years and, therefore, should have been turned over, as required.
Chenango County Industrial Development Agency (CCIDA) – Audit Follow-Up Auditors determined that CCIDA officials have demonstrated minimal progress implementing corrective action in a follow up examination. Of the 10 audit recommendations included in a 2022 audit, one recommendation was fully implemented, one recommendation was partially implemented, and eight recommendations were not implemented.
Town of Hector – Employee Compensation (Schuyler County) Town employee compensation was not always authorized, accurate and supported. Of the 53 employee records reviewed, auditors determined that town officials paid 10 employees a total of $150,155 that was not authorized by the board and inaccurately accrued and recorded leave time totaling 1,830 hours valued at $38,586 for 20 of 23 eligible employees. An employee was also paid $5,271 for a separation payment that was not approved by the board.
Wayland-Cohocton Central School District – Building Access Accounts and Badges (Steuben County) District officials did not properly manage and monitor building access accounts or badges used to access buildings. District officials did not establish written procedures identifying who is responsible for managing and monitoring building access accounts. Although auditors determined that the district had a process for granting access and adding information into the building access system for employees during the hiring process, including background checks, the district did not have an adequate process for granting access to non-employees. Almost half of the active building access accounts and badges were for non-employees. Officials also did not establish a service level agreement with the third-party contractor that issued and managed 209 building access accounts and badges. Auditors also found access was granted to 39 individuals participating in continuing education programs without conducting any background checks and issued 14 building access accounts and badges without verification.
Town of Castile – Tax Collection Remittance (Wyoming County) The clerk did not remit collections to the town supervisor and Wyoming County treasurer within the timeframes established by town law. As a result, funds were not provided to finance town and county operations in a timely manner. The clerk did not remit taxes totaling approximately $1.3 million to the supervisor at least weekly. The clerk made one payment totaling approximately $2.8 million to the treasurer in April 2024 instead of paying three separate required payments totaling approximately $2.5 million in February, $132,877 in March and $107,896 in April. The board did not audit the clerk’s records as required and, as a result, did not know that the clerk was incorrectly remitting collections.
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