New York State's Comptroller releases audits

On April 24, 2024 New York State Comptroller Thomas P. DiNapoli announced the following local government and school audits were issued.

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

 

Town of Lincoln – Disbursements (Madison County) 

The board and former supervisor did not ensure that disbursements were adequately supported and properly approved. The former supervisor received 13 check payments, totaling $5,142, that were not supported. Also, three of these payments totaling $2,605 were not audited and approved by the board. Claims totaling $109,158 were improperly paid prior to board audit, and claims totaling $533,518 were improperly audited and approved by the former supervisor rather than the board. In addition, 13 claims, totaling $23,116, did not contain sufficient supporting documentation. Lastly, the former bookkeepers did not maintain time records to support the hours for which they were paid, and one bookkeeper received $1,751 in additional pay with no evidence of approval.

 

Town of Lincoln – Town Clerk (Madison County)

 The former clerk did not properly account for, deposit, report or remit collections. As of April 13, 2022, the former clerk could not account for cash totaling $3,869. The former clerk also did not deposit $4,038 in cash collections recorded from Jan. 1, 2018 through April 13, 2022, or maintain complete records for all cash collected. Town officials found $622 in cash in her office with no supporting records showing the source of the funds. She also did not record 44 checks totaling $4,320 in the accounting system, and improperly voided other receipts totaling $769. These unrecorded receipts and voids enabled the former clerk to conceal cash collections that were recorded but not deposited. In addition, the board did not perform an annual audit of the former clerk’s records, as required. In July 2023, the former clerk was arrested on charges of petit larceny for stealing nearly $4,000 from the town. In February 2024, she pleaded guilty to the theft, paid restitution of $3,869 and received a one-year conditional discharge.

 

Raquette Lake Union Free School District – Business Office Operations (Hamilton County)

 The board and district officials did not provide effective oversight of the business office operations. Specifically, the board did not ensure the required 2021-22 annual financial report was filed or obtain adequate written agreements with a third party providing accounting and reporting services that specified the roles and responsibilities of the district and the third-party provider. The board also did not implement controls to safeguard the treasurer's signature on disbursement checks or monitor the third-party online access to the district’s bank accounts.

 

Village of Suffern – Budget Review (Rockland County)

Based on the results of the review, auditors found that the significant revenue and expenditure projections in the 2024-25 proposed budget are reasonable. They also found that the village’s tentative budget includes a tax levy of $12,533,658, which is within the limit established by law.

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An inference of animus found "sufficiently specific" to bar granting the Employer's motion to dismiss Plaintiffs' claims

The Appellate Division unanimously reversed a New York State Supreme Court's ruling granting the City of New York's motion to [1] dismiss racial discrimination claims alleged by Plaintiffs pursuant to the New York State and City Human Rights Laws and [2] the hostile work environment claim Plaintiffs alleged pursuant to the New York City Human Rights Law which the Plaintiffs had asserted against the City of New York and a named defendant.

Citing Harrington v City of New York, 157 AD3d 582 and Reichman v City of New York, 179 AD3d 1115, the Appellate Division opined that Plaintiffs' employment discrimination and hostile work environment claim alleged pursuant the New York City Human Rights Law were improperly dismissed by Supreme Court for failure to sufficiently allege discriminatory animus.

Noting "the comments of the now-dismissed defendants are not properly considered, and the sole remaining individual [named] defendant is not alleged to have made any even arguably discriminatory statements, [Plaintiffs] raised an inference of animus through their allegations of differential treatment of similarly situated white officers in terms of assignments, evaluations, and placement on performance monitoring".

In the words of the court, "Plaintiffs sufficiently alleged that the white officers were similarly situated." In addition, said the Appellate Division, "[the] allegations of differential treatment were also sufficiently specific and factual in nature."

Click HERE to access the Appellate Division decision posted on the Internet.

 

Substantial evidence held to support finding the accused guilty of certain disciplinary charges filed against him

A New York City police officer [Petitioner] was found guilty of four of the five disciplinary charges filed against him by the New York City Police Department [Employer] which included allegations that Petitioner [1] "engaged in a physical altercation with his estranged wife; [2] "failed to request permission before leaving his residence while on sick report, and [3] "violated a protective order on multiple occasions." 

Terminated from his position, Petitioner appealed, claiming violations of his right to due process.

The Appellate Division held that Petitioner's claims were "unavailing", finding that Petitioner received advance notice of the charges, was provided a full evidentiary hearing, and he was represented by counsel at the hearing. 

The court said contrary to Petitioner's arguments, Employer appears "to have submitted the administrative record, including a certified transcript of the hearing," in its answer. Further, the Appellate Division opined, "Petitioner's contentions regarding his sealed arrest records are unavailing as the administrative decision reflects that the Hearing Officer based his conclusions on the witnesses' testimony and exhibits entered into evidence by stipulation of the parties".

The Appellate Division unanimously confirmed the Employer's terminating Petitioner from his position pointing out that substantial evidence supported the Employer finding that Petitioner was guilty of four of the five charges served upon him.

Noting that the Hearing Officer was entitled to credit the testimony of Petitioner's estranged wife that Petitioner "failed to identify himself as a uniformed member of the service during a ... domestic incident" over the Petitioner's testimony concerning the event as Petitioner's testimony was inconsistent with the responding police officer's body camera footage and the responding police officer's testimony that Petitioner did not so identify himself.

As to the penalty imposed, dismissal from his employment with the New York City police department, the Appellate Division opined that "the penalty of dismissal is not disproportionate to the seriousness of the multiple violations involved", citing Matter of Kelly v Safir, 96 NY2d 32.

Click HERE to access the opinion of the Appellate Division posted on the Internet.

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A Reasonable Disciplinary Penalty Under the Circumstances - an e-book focusing on determining an appropriate disciplinary penalty to be imposed on an employee in the public service of the State of New York and its political subdivisions in instances where the employee has been found guilty of misconduct or incompetence. For more information and access to a free excerpt of the material presented in this e-book, click here: http://booklocker.com/books/7401.html

 

 

Former Utica City School District Superintendent sentenced for public corruption, must pay over $160,000 to the school district

On April 19, 2024, New York State Comptroller Thomas P. DiNapoli, Oneida County District Attorney Todd Carville, and the New York State Police announced that the former Bruce Karam, the former long-time superintendent of the Utica City School District (UCSD), was sentenced to pay the UCSD restitution of $11,549 for the resources improperly diverted, serve five years’ probation and perform 250 hours of community service. Karam was also ordered to pay UCSD $150,000 by May 17, representing a reduction in his pension earnings from the date of his crime until his termination.

State Comptroller DiNapoli said “Bruce Karam shamelessly diverted funds meant to benefit students to further his personal interests," DiNapoli thanked "Oneida District Attorney Todd Carville and the New York State Police for their assistance in ensuring justice was served.”

Oneida County District Attorney Carville said: “Today’s sentence represents accountability and just punishment for a former local leader who abused his power and the public trust. I want to thank the New York State Comptroller’s Office and the New York State Police for their assistance and tireless pursuit of justice in this matter.” 

New York State Police Superintendent Steven G. James said, “Mr. Karam deliberately embezzled funds intended to enrich the education of the youth and enhance the community for his own selfishness. This sentencing should serve as a reminder that defrauding of any amount will be met with multi-agency collaborative investigations resulting in indictments and arrests. I commend the diligent work of our State Police members, along with our partners at the State Comptroller’s Office and Oneida County District Attorney’s Office, for their hard work in putting an end to this dishonest act.”

Karam had pleaded guilty to public corruption, a felony, for using public resources to support the school board election campaigns of candidates he favored and who would determine his salary as members of the board. He also used school resources to send invitations for a non-school related fundraiser for a purported charity run by former Utica mayor and school board president Louis LaPolla. Fundraiser fliers for the charity were inserted by school district employees during school hours in envelopes the school district paid for and were mailed using the district’s stamps.

Karam was the UCSD’s Superintendent from 2011 until October 2022. He was terminated by the school board shortly after his arrest in November 2023. His co-defendant, LaPolla, was sentenced to 60 days of house arrest and three years of probation earlier in April 2024.

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

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NYPPL public personnel law handbooks available from Booklocker

The Discipline Book, - A concise guide to disciplinary actions involving public employees in New York State and its political subdivisions set out in an e-book. For more information and access to a free excerpt from this e-book, click here: http://booklocker.com/books/5215.html

A Reasonable Disciplinary Penalty Under the Circumstances - an e-book focusing on determining an appropriate disciplinary penalty to be imposed on an employee in the public service of the State of New York and its political subdivisions in instances where the employee has been found guilty of misconduct or incompetence. For more information and access to a free excerpt of the material presented in this e-book, click here: http://booklocker.com/books/7401.html

The Layoff, Preferred List and Reinstatement Manual - an e-book reviewing the relevant New York State laws, rules and regulations, and selected court and administrative decisions. For more information and access to a free excerpt of the material presented in this e-book, click here: http://booklocker.com/books/5216.html

Disability Benefits for New York State and municipal public sector personnel - an e-book focusing on administering the Retirement and Social Security Law, the General Municipal Law Sections 207-a/207-c and similar laws providing disability benefits to employees of the State of New York and its political subdivisions. For more information and access to a free excerpt of the material presented in this e-book, click here: http://booklocker.com/books/3916.html

N.B. 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.