Internal Controls Over Town Operations
During fiscal years 2006 to 2008, Town officials inaccurately reserved an average of $14.3 million per year in fund balance for purchase orders that did not support actual Town obligations. During the 2007 and 2008 fiscal years, the Town Comptroller, following a long-standing practice, incorrectly charged a total of $9,958,007 of revenues and expenditures to the wrong funds, which resulted in an inequitable tax levy on certain taxpayers. In addition, poor accounting for capital projects in the early 1990’s led to deficits in the capital projects fund of $3,324,744 that have never been resolved, and the Town was expending bond proceeds for purposes other than those intended.
Cash transactions were not posted in a timely manner, cash receipts books were not controlled, blank checks were not secure, and 22 duplicate receipt books were missing. As a result, a cash shortage of at least $12,250 occurred and was not detected.
Employees received leave time and other fringe benefits without Board authorization, resulting in the Town incurring over $111,000 in unauthorized expenses. The Town also inappropriately provided three independent contractors with health insurance coverage through the Town’s participation in the New York State Health Insurance Program. Finally, Town personnel did not solicit competition when procuring the services of 18 professional service providers who were paid $1,154,094.
Town of Islip[complete audit - pdf]