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City of Middletown – Payroll and Leave Benefits (Orange County)
City officials did not accurately pay employees’ salaries, wages and benefits or properly accrue leave benefits. Auditors reviewed payments and benefits totaling $1.9 million and found exceptions totaling $292,205, including $191,253 in potential overpayments. As a result, the city paid employees for time they did not work or accrue. Two sewer treatment plant employees received $91,492 for time they may not have worked because they were working at another municipality. City officials made $99,761 in vacation buyout payments that were not in accordance with city collective bargaining agreements.
Town of Philipstown – Financial Management (Putnam County)
The board did not properly manage the town’s financial operations and used the town’s general fund to pay for the Garrison Landing Water District’s (GLWD’s) operation and maintenance costs. During the audit period, the town’s residents paid $2.4 million of the GLWD’s costs that only benefited taxpayers within the water district and resulted in the decline of the general fund balance from $1 million to $53,137. Specifically, the board did not appropriately budget for GLWD operations. Although the town had a GLWD water fund and budgeted approximately $20,000 for debt service in it, the board did not budget for GLWD appropriations in the general fund each year, where annual GLWD expenditures were funded and increased from $85,436 to $975,475 over the six-year audit period. The board did not adopt a transparent budget that clearly communicates the costs associated with GLWD operations or the associated funding sources to taxpayers. The board also did not adopt a comprehensive written multi-year financial plan to help guide the budget development process or establish funds to help finance future expenditures.
Town of Pleasant Valley – Financial Management (Dutchess County)
The board did not develop realistic budgets or properly manage reserves. As a result, the town had significant recurring operating surpluses and may have levied more taxes than necessary. From fiscal years 2019 through 2023, revenues were underestimated and expenditures were overestimated in the general and highway funds, generating operating surpluses totaling $5.1 million and $1.2 million, respectively. The board appropriated fund balance to offset annual deficits that was not needed to fund operations, including $439,870 in the general fund for the audit period and $603,395 in four of the five years reviewed for the highway fund. The board also accumulated surpluses resulting in unrestricted fund balances totaling $4.5 million and $2.4 million in the general and highway funds, respectively, as of Dec. 31, 2023. Because the board did not adopt a fund balance policy and lacked a plan on how the funds will be used, there was no rationale for accumulating significant fund balances.
Village of Leicester – Financial Management (Livingston County)
The board did not effectively manage the village’s fund balance or adopt realistic budgets.
Officials maintained unrestricted fund balance in the general and water funds totaling $729,709 and $152,143, respectively, at the end of the 2023-24 fiscal year, which was sufficient to fund the upcoming fiscal year’s budget appropriations for the general fund by nearly four times and for the water fund by more than half. The board also did not adopt a written fund balance policy or develop and adopt comprehensive written multi-year financial or capital plans that would have assisted the board and officials in developing and adopting realistic budgets and planning for the village’s financial future.
Caledonia Volunteer Fire Department, Inc. – Board Oversight (Livingston County)
The board did not provide adequate oversight of financial operations. In addition, the previous audit report, released March 2014, had similar findings and recommendations concerning the board’s lack of oversight. Because the board did not implement adequate corrective action to address these findings, the same deficiencies exist. The board did not ensure that the financial review committee conducted an annual review of the treasurer’s financial records or that all 325 claims paid between Jan. 1, 2023 and May 31, 2024, totaling $174,302, were reviewed, approved and properly supported. The board also did not ensure the treasurer maintained accurate and complete financial records or provided the board with adequate financial reports, bank statements, canceled check images and bank reconciliations to monitor operations. The board also did not ensure that officials safeguarded and properly supported hall rental and fundraising revenues. From Jan. 1, 2023 through May 31, 2024, deposits, including those for hall rentals and fundraising, totaled $211,917.