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NYS Comptroller


Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Village of Bridgewater – Monitoring Financial Operations and Payroll Taxes (2011M-266)

Released: March 30, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review Board monitoring of selected financial operations and the Clerk-Treasurer's withholding and remittance of payroll taxes for the period June 1, 2010, to August 31, 2011.


The Village of Bridgewater is located in the Town of Bridgewater in Oneida County. The Village is governed by an elected Board of Trustees which is composed of a Mayor and two Trustees, all of whom are elected for two-year terms. The Village's 2011-12 operating budget totaled about $108,000 for the general fund and $68,000 for the water fund.

Key Findings

  • The Board did not properly monitor the Village's financial operations when it failed to audit or cause to be audited the records and reports of the Clerk-Treasurer, as required by Village Law and the Village's financial accountability procedures.
  • The Board also failed to ensure the Clerk-Treasurer completed and provided necessary financial reports timely.
  • The former Clerk-Treasurer withheld social security and Medicare (FICA) deductions from employee's paychecks, but did not remit these withholdings to the IRS in a timely manner. The former Clerk-Treasurer filed and remitted employee and employer shares of FICA payroll taxes totaling $19,469 in July 2011, representing more than 11 years of taxes due from April 2000 to June 2011. As of January 2012, the Village has paid $11,213 in late fees, penalties and interest for delinquent FICA taxes.

Key Recommendations

  • Audit or cause to be audited the Clerk-Treasurer's records and reports on an annual basis.
  • Ensure that the Clerk-Treasurer provides the Board with timely monthly reports that include budget-to-actual comparisons for revenues and expenditures, cash balances, bank reconciliations and the corresponding bank statements.
  • File and remit all required payroll tax reports to the IRS timely.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email:
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236