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Jun 7, 2024

New York States Comptroller Thomas P. DiNapoli releases municipal audits

On June 7, 2024, New York State Comptroller Thomas P. DiNapoli announced the following local government audits were issued.

Click on the text highlighted in color to access both the summary and the complete audit report posted on the Internet.

 

Village of Airmont – Claims Auditing (Rockland County) The board did not audit claims before payment to ensure they were for appropriate village purposes, accurate, and adequately supported. As a result, auditors identified overpayments and claims with insufficient documentation to ensure they were appropriate. Auditors reviewed 30 claims totaling $883,765 and determined that none of the claims were audited by the board. In addition, one vendor was overpaid $36,905 for snow plowing services due to the vendor’s use of the higher year-end Consumer Price Index rate instead of the monthly CPI rate. Six claims totaling $42,406 did not comply with the village’s purchasing policy and also did not contain sufficiently supported documentation to ensure claims were appropriate, accurate and approved.


Village of Argyle – Water Billings and Collections (Washington County)  Officials did not provide adequate oversight of water billing and collections. As a result, delinquent accounts were not enforced, and the village lost revenue. The clerk-treasurer did not maintain adequate water billing and collection accounting records and did not properly assess $4,330 in penalties on unpaid customer accounts. The board did not formally adopt the water billing rates charged to customers. In addition, the board did not enforce 39 unpaid customer accounts with unpaid balances totaling $14,458 for water bills from the September 2022 and March 2023 billings.


Town of Byron – Procurement (Genesee County) The board and town officials did not always comply with state law or the town’s procurement policy. If they had, they may have saved money by using a state fuel contract and may have paid less for other goods and services. The board and town officials procured fuel totaling $59,795 without obtaining competitive bids as required by law and the town’s procurement policy. Furthermore, the town paid approximately $4,000 more than the state contract price for the more than 16,700 gallons purchased during the audit period. It also  did not obtain quotes or request proposals in accordance with the town’s procurement policy for 10 purchases totaling $68,103. The town also did not use request for proposals or another competitive process to procure services from seven professional service providers totaling $630,336.


Crown Point Fire District – Board Oversight (Essex County) The board did not adequately oversee the district’s financial operations. As a result, the board cannot assure that the district’s financial operations are adequately accounted for and reported. For the 24 months reviewed, the board did not receive treasurer’s reports of collection and disbursement details for three months; cash balances for two months; and bank reconciliations, bank statements and cancelled check images for 19 months. As a result, the board’s ability to assess and monitor the district’s financial activity was diminished. As of Dec. 31, 2023, required annual audits for 2017 through 2022 were not conducted. As a result, there is no independent verification that the secretary-treasurer has properly recorded collections and disbursements and maintained current and accurate records and reports. In addition, required annual financial reports for 2018 through 2022 were not filed.


Town of Exeter – Town Clerk/Tax Collector (Otsego County) The clerk generally recorded collections accurately and deposited and remitted fees in a timely manner. However, the clerk did not always deposit real property taxes in a timely manner and did not remit these collections to the supervisor in a timely manner. Specifically, the clerk did not deposit 39 real property tax collections, totaling $505,197, within 24 hours of the date recorded as collected, without indication of the actual date of receipt or remit real property taxes to the supervisor on a weekly basis, as required by town law. Instead, the clerk made annual remittances in February, which kept the money from being productively used or invested to earn additional revenue.


Town of Exeter – Town Supervisor’s Records and Reports (Otsego County) The supervisor did not maintain complete, accurate and timely financial records and reports, which hindered the board from monitoring the town’s financial condition. While revenues and expenditures were recorded accurately and in a timely manner, balance sheet accounts were not properly maintained due to carrying over unsupported balances for interfund activity, receivables, and cash balances from prior years. As a result, the general fund balance was overstated by $81,929. In addition, annual financial reports have not been filed since 2016, as required and the supervisor did not provide the board with his records for audit, as required.


City of Yonkers – Budget Review (Westchester County) Some significant revenue and expenditure projections in the proposed budget are unreasonable. Officials continued the practice of using debt to pay for recurring costs. The review determined the city’s proposed budget continues to rely on $87.9 million in nonrecurring revenue, such as appropriated fund balance, one-time state funding and sale of property, to finance its operations and includes revenue estimates that may not be achievable.


 

Earnings Limit Suspended for School District and BOCES Employees who are receiving a pension from NYSLRS

The New York State and Local Retirement System reports that for most NYSLRS retirees who work for a public employer after retirement, the amount the retiree can earn each calendar year, without affecting the retiree's pension, is limited to $35,000. For NYSLRS retirees employed by school districts and, or, Boards of Cooperative Educational Services (BOCES), the earnings limit is now suspended through June 30, 2025.

The earnings limit suspension for school employees does not apply to NYSLRS retirees who work for a public college, university or charter school. If the retiree is going to earn more than the limit, it is the retiree's responsibility to report this fact to NYSLRS. Read more...

 


Jun 6, 2024

Former West Carthage Housing Authority executive director and mother pled guilty for over $48,000 theft

On June 4, 2024, New York State Comptroller Thomas P. DiNapoli, Jefferson County District Attorney Kristyna S. Mills, the U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD OIG), and the New York State Police announced the guilty pleas of former West Carthage Housing Authority (WCHA) Executive Director Jan Hoffman for stealing over $48,000 in WCHA funds, and Katherine (Katie) Pais, Hoffman’s mother and former WCHA consultant, for aiding in and concealing the scheme.

“Hoffman and Pais brazenly diverted funds meant to support seniors and individuals with disabilities to line their own pockets,” DiNapoli said. “Thanks to the partnership between my office, Jefferson County District Attorney Kristyna S. Mills, the HUD Inspector General, and the New York State Police, they have been held accountable for their actions.”

“The fraud committed by the defendants diverted critical taxpayer money that was intended to benefit elderly and-low-income families in our communities," said Special Agent-in-Charge Vicky Vazquez with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG remains steadfast in its commitment to working with our prosecutorial, law enforcement and oversight partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.”

New York State Police Superintendent Steven G. James said, “The individuals charged in this case stole funds from unsuspecting citizens, using the money for their own personal benefit. We will not tolerate the conduct of those who take advantage of their position to steal money that was meant to benefit people in need. I commend everyone who worked on this case – our members and all our partners – who have now ensured that the two people responsible for this crime are held fully accountable.”

Hoffman served as the executive director of WCHA, a government-funded apartment complex for low-income senior citizens and individuals with disabilities, from 2016 to 2021. Pais, Hoffman’s mother, was hired by the WCHA board and served as accounts payable bookkeeper from 2016 to 2020.

Based upon an anonymous tip, Comptroller DiNapoli’s Office and the HUD OIG commenced an investigation of all monies controlled by Hoffman and found that she had been making personal purchases with housing authority funds since 2016, her entire tenure as executive director. In total, Hoffman stole over $48,000 from WCHA by using WCHA’s financial accounts and credit lines for unauthorized personal expenses including retail purchases, personal cell phone bills, and groceries. Additionally, Hoffman submitted over $1,000 in false reimbursements.

Through her role as the accounts payable bookkeeper, Pais facilitated and concealed Hoffman’s theft. Pais was responsible for reviewing claims and preparing checks for payment. Pais not only knew about Hoffman’s continuous theft and failed to report it to the board, but also made the illicit payments and then falsified records to cover for her daughter.

Hoffman pled to Grand Larceny in the Third Degree, charged as a crime of public corruption and Pais pled to Corrupting the Government in the Fourth Degree before Judge David A. Renzi at Jefferson County Court. The defendants are due back in court for sentencing on August 6, 2024.

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Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at https://www.osc.ny.gov/investigations, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.



Editor in Chief Harvey Randall served as Director of Personnel, State University of New York 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, JAG, Command Headquarters, 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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