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Nov 14, 2020

Audits of Municipalities and School Districts issued during the week ending November 13, 2020

On November 13, 2020, New York State Comptroller Thomas P. DiNapoli announced the following local government audits has been issued.

Click on the text highlighted in color to access the complete audit report

 

MUNICIPAL AUDITS

Town of Decatur – Town Clerk (Otsego County) Auditors determined the town clerk did not issue duplicate receipts for any collections during the audit period which totaled $1,630. The clerk also did not report or remit any fees received to the supervisor or New York State Agriculture and Markets. In addition, the board did not conduct or cause an annual audit of the clerk’s records and reports.

Town of Decatur – Disbursement Oversight and Accounting Records and Reports (Otsego County)The board did not provide adequate oversight of the disbursement process and the supervisor did not maintain complete, accurate and timely accounting records and reports. The board also did not approve all claims. The board did not require adequate supporting documentation for all claims or annually audit, the supervisor’s records and reports. The 2018 general ledger was significantly incomplete and the 2019 general ledger had several accounts misclassified. In addition, the annual financial reports and tax cap forms were not filed, as required. As a result, the board was unaware that the 2019 levy significantly exceeded the cap and did not pass the required local law to override the cap.

Town of East Hampton - Budget Review (Suffolk County) Based on the results of our review, auditors found that the revenue and expenditure projections in the tentative budget are reasonable. The town’s 2021 tentative budget includes a proposed tax levy of $60,177,065.

City of Lockport – Budget Review (Niagara County) Based on the results of auditors’ review, the revenue and expenditure projections in the proposed budget appear reasonable. Auditors cautioned that evolving circumstances caused by the pandemic may require adjustments to the budget throughout the year. The proposed budget includes state aid and sales tax estimated revenues of $2.1 million and $5.5 million, respectively, which may not be attainable.

Town of Patterson – Justice Court Operations (Putnam County) Although the justices accurately collected, recorded and deposited fines and fees, they did not disburse or report all fines and fees in a timely and accurate manner. The justices also did not adequately account for bail, which led to them retaining $14,793 in bail funds that could not be identified by payee. The court clerks did not return unclaimed exonerated bail totaling $16,287 to the known payees or remit them to the town. In addition, 55 of 100 tickets reviewed were not reported or incorrectly reported to the New York State Department of Motor Vehicles (DMV), or were not submitted to the DMV’s Scofflaw Program.

City of Troy – Budget Review (Rensselaer County) The significant revenue and expenditure projections in the proposed budget are reasonable. The proposed budgeted revenues for state aid funding and traffic and parking ticket fines may not be fully realized. City officials project the general fund having an unassigned fund balance of approximately $3 million at the end of 2020 or the same amount as the recorded unassigned fund balance at the end of 2019. However, the 2019 amount of unassigned fund balance has not been verified.

 

SCHOOL DISTRICT AUDITS

Mount Pleasant Cottage Union Free School District – Procurement (Westchester County) District officials did not use a competitive process to procure goods and services. For example, auditors found that district officials paid a vendor $238,465 without documentation and they justified this was a valid exception to competitive bidding. They also did not issue requests for proposals for six of 10 professional services providers that were paid $416,367. In addition, district officials did not obtain quotes for 20 purchases totaling $150,293 out of 30 reviewed.

Newfane Central School District – Financial Management (Niagara County) The board and district officials can better manage fund balance and reserves. Auditors determined surplus fund balance exceeded the limit each year by $8.1 million to $9 million, or 26 to 28 percentage points, which exceeded the 4 percent statutory limit. In addition, $13.4 million was improperly restricted in two reserves: $12.6 million in the employee benefit accrued liability reserve and $800,000 in the debt service reserve.

Southern Cayuga Central School District – Financial Condition (Cayuga County and Tomkins County) The board underestimated revenues by an average of $141,038 and overestimated appropriations by an average of $1.3 million over the three completed years. As a result, the district generated large operating surpluses and did not use about $1.1 million in appropriated fund balance. As of June 30, 2019, recalculated surplus fund balance totaled almost $1.7 million and was 10.7 percent of 2018-19 expenditures. In addition, the board and district officials did not develop adequate multiyear financial and capital plans.

 

Nov 13, 2020

A decision denying an employee's application for disability retirement benefits that is supported by credible medical evidence is not arbitrary and capricious

The petitioner [Plaintiff] in this CPLR Article 78 proceeding applied for disability retirement benefits pursuant to §507-c of the Retirement and Social Security Law contending that he was injured while working as a correction officer with the New York City Department of Correction.

The Board of Trustees [Trustees] of the New York City Employees' Retirement System [NYCERS] denied Plaintiff's application for disability retirement benefits in consideration of the recommendation of NYCERS' Medical Board [Board]. Plaintiff challenged the Trustees determination but Supreme Court rejected Plaintiff's Article 78 petition and dismissed the proceeding. Plaintiff appealed the Supreme Court's ruling.

The Appellate Division affirmed the Supreme Court's decision, with costs.

The Appellate Division explained that the Supreme Court denied the petition and dismissed the proceeding based on its finding that the Trustees had adopted the recommendation of the Board, which recommendation was supported by credible medical evidence and thus was not arbitrary and capricious.

Citing Matter of Drummond v New York City Employees' Retirement Sys., 98 AD3d 1116, the court noted that the Board's determination "is conclusive if it is supported by some credible evidence and is not arbitrary or capricious." Here, said the Appellate Division, "the record demonstrates that the [Board] performed physical and psychological examinations of the [Plaintiff] and considered his medical evidence."

Although the medical conclusions of some of the Plaintiff's treating physicians differed from those of the Board, "the resolution of such conflicts is the sole province of the Medical Board." As the determination of the Board was supported by credible evidence, the Appellate Division opined that the Trustees' adoption of the Board's recommendation and denying the Plaintiff's application for disability retirement benefits was not irrational, arbitrary, or capricious.

Accordingly, the Appellate Division said it agreed with the Supreme Court's decision  rejecting Plaintiff''s Article 78 petition and dismissing Plaintiff's appeal.

The decision is posted on the Internet at http://www.nycourts.gov/reporter/3dseries/2020/2020_06272.htm

 

A decision denying an employee's application for disability retirement benefits that is supported by credible medical evidence is not arbitrary and capricious

The petitioner [Plaintiff] in this CPLR Article 78 proceeding applied for disability retirement benefits pursuant to §507-c of the Retirement and Social Security Law contending that he was injured while working as a correction officer with the New York City Department of Correction.

The Board of Trustees [Trustees] of the New York City Employees' Retirement System [NYCERS] denied Plaintiff's application for disability retirement benefits in consideration of the recommendation of NYCERS' Medical Board [Board]. Plaintiff challenged the Trustees determination but Supreme Court rejected Plaintiff's Article 78 petition and dismissed the proceeding. Plaintiff appealed the Supreme Court's ruling.

The Appellate Division affirmed the Supreme Court's decision, with costs.

The Appellate Division explained that the Supreme Court denied the petition and dismissed the proceeding based on its finding that the Trustees had adopted the recommendation of the Board, which recommendation was supported by credible medical evidence and thus was not arbitrary and capricious.

Citing Matter of Drummond v New York City Employees' Retirement Sys., 98 AD3d 1116, the court noted that the Board's determination "is conclusive if it is supported by some credible evidence and is not arbitrary or capricious." Here, said the Appellate Division, "the record demonstrates that the [Board] performed physical and psychological examinations of the [Plaintiff] and considered his medical evidence."

Although the medical conclusions of some of the Plaintiff's treating physicians differed from those of the Board, "the resolution of such conflicts is the sole province of the Medical Board." As the determination of the Board was supported by credible evidence, the Appellate Division opined that the Trustees' adoption of the Board's recommendation and denying the Plaintiff's application for disability retirement benefits was not irrational, arbitrary, or capricious.

Accordingly, the Appellate Division said it agreed with the Supreme Court's decision  rejecting Plaintiff''s Article 78 petition and dismissing Plaintiff's appeal.

The decision is posted on the Internet at http://www.nycourts.gov/reporter/3dseries/2020/2020_06272.htm

 

Editor in Chief Harvey Randall served as Director of Personnel, SUNY Central Administration, Director of Research , Governor's Office of Employee Relations; Principal Attorney, Counsel's Office, New York State Department of Civil Service, and Colonel, 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.

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Subsequent court and administrative rulings, or changes to laws, rules and regulations may have modified or clarified or vacated or reversed the information and, or, decisions summarized in NYPPL. For example, New York State Department of Civil Service's Advisory Memorandum 24-08 reflects changes required as the result of certain amendments to §72 of the New York State Civil Service Law to take effect January 1, 2025 [See Chapter 306 of the Laws of 2024]. Advisory Memorandum 24-08 in PDF format is posted on the Internet at https://www.cs.ny.gov/ssd/pdf/AM24-08Combined.pdf. Accordingly, the information and case summaries should be Shepardized® or otherwise checked to make certain that the most recent information is being considered by the reader.
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