New York
State Comptroller Thomas P. DiNapoli announced the following audits and reports
were issued were issued on April 12, 2023.
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The board did not effectively audit claims prior to payment. As a result,
disbursements were made for unsupported and improper claims. During the audit
period, the board approved 890 claims totaling $8.2 million. Of the 200 claims
totaling $1 million that were examined, 78 claims totaling $195,545 did not
have support that the purchases complied with competitive bidding requirements or
the village’s procurement policy, five claims totaling $1,334 included food and
alcohol purchases and one claim totaling $700 did not have an itemized receipt
and did not follow procurement guidelines. In addition, six claims totaling
$637 did not have appropriate support, such as an itemized receipt or invoice.
Lastly, credit card claims totaling $62,404 were improperly paid before board
audit.
The board did not transparently plan or sufficiently monitor the project. As
a result, total costs exceeded grant revenues by $256,302 and contributed to
the declining fund balance in the village’s general fund. The board did not
prepare a project budget or ensure that a separate capital projects fund was
set up to record project revenues and expenditures. The board also did not
ensure the project was monitored and change orders were reviewed and approved,
nor did it competitively procure project contracts and expenditures.
Village officials did not establish adequate controls over the department’s
financial activities, resulting in $16,525 in unaccounted for collections. Cash
receipt processes and oversight were inadequate and key duties were not
segregated. In addition, collection, receipting and recordkeeping procedures
were inadequate. The department hosted 15 tournaments and held nine
fundraisers. However, no money was deposited for 11 of the tournaments and two
of the fundraisers. Registration forms for 26 of 36 sports leagues were not
maintained. The former director awarded scholarships (i.e., waived registration
fees) without any guidelines, board oversight or approval, and also
inappropriately used village bank accounts for non-village activities. As a
result of the audit and investigation, the former director was arrested and
pleaded guilty in December 2022 to official misconduct. As part of his plea, he
resigned from his position and was sentenced to a one-year conditional
discharge and paid the full restitution of $16,525.
Based on the results of the review, auditors found that the revenue and
expenditure projections in the 2023-24 proposed budget are reasonable. However,
auditors also found that the district’s proposed budget includes approximately
$11.3 million in health insurance appropriations; this appropriation is $3.4
million, or 43%, more than the $7.9 million projected expenditure for 2022-23 and
$3.9 million, or 54%, more than the $7.4 million average health insurance
expenditure incurred during the last five years. The district’s proposed budget
complies with the tax levy limit.
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