Audits of Local Governments and School Districts
Town of North Greenbush – Records and Reports (2011M-205)
Released: February 6, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to review the Town's accounting records and reports for the period January 1, 2009 to May 31, 2011.
The Town of North Greenbush is located in Rensselaer County. The Town Board comprises the Town Supervisor and four Council members. The Town's 2009 annual update document (AUD), filed with the Office of the State Comptroller, reported operating expenditures totaling over $8.8 million including approximately $3.89 million for the general fund, $1.78 million for the highway fund, $2.58 million for the water fund, and $374,000 for sewer fund.
- Due to the poor condition of the Town's financial records and reports, we were unable to determine the true financial condition of the Town. Based on the financial information provided in the AUDs filed by the Town for the years 2006 to 2009, it appears that the Town has significant fiscal stress issues that need to be addressed.
- The Board and Supervisor did not provide adequate oversight of the former Comptroller's activities. As a result, the former Comptroller made interfund transfers of $678,712 that were not authorized by the Board and over $920,000 of loans to other funds that were not repaid in a timely manner.
- The former Comptroller did not maintain complete, accurate and up-to-date accounting records, perform timely monthly bank-to-book reconciliations, or provide complete and accurate monthly financial reports to the Board.
- As of November 16, 2011, the current Comptroller had not filed the AUD for the 2010 fiscal year.
- Identify the financial reports that the Comptroller should provide to them on a regular basis to help manage Town finances and evaluate financial condition.
- Review the interfund transfers to the general fund and determine if they were authorized and appropriate. Address the outstanding interfund loans and develop a plan for repayment of these loans.
- Implement fiscal policies to ensure that the Town's accounting records, as maintained by the Comptroller, are complete, accurate and up-to-date.
- File the Town's AUD with the State Comptroller and Clerk within 90 days after the close of the fiscal year, or 120 days after the close the fiscal year, if an extension is granted.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: firstname.lastname@example.org
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236