Audit Objective
Determine whether Village of Horseheads (Village) officials properly audited claims and authorized non-payroll disbursements.
Key Findings
Based on our sample of $1.1 million in claims and disbursements reviewed, Village officials did not properly audit all claims or authorize disbursements. As a result, payments were made for unsupported, duplicate and/or improper claims. Village officials did not:
- Ensure an independent review of Parks and Recreation Department (Department) claims occurred.
- Ensure all claims contained adequate supporting documentation for 140 purchases totaling $44,547.
- Ensure the Village’s procurement policy was followed for three purchases totaling $19,179.
- Document whether claims were audited prior to funds being disbursed.
- Monitor telephone and Internet services for necessity, which resulted in expenditures of $5,406 for 11 service lines with no usage.
The Comptroller’s Office commenced a separate investigation into the possible misappropriation of Village funds. In August 2023, the Assistant Clerk was arrested on the charges of grand larceny in the third degree and corrupting the government. In March 2024, the Assistant Clerk pleaded guilty to attempted petit larceny and paid full restitution.
Key Recommendations
- Perform a deliberate and thorough audit of claims and supporting documentation and transmit an order to pay claims.
- Ensure that claims contain sufficient documentation to support compliance with the Board policy requiring competition when procuring goods and services.
- Establish procedures to detect and prevent the approval and payment of duplicate claims.
- Periodically review and determine the necessity of telephone and Internet services for usefulness.
Village officials generally agreed with our findings and indicated they have initiated, or plan to initiate, corrective action.