Skip to Content

Login   Subscribe   Site Index   Contact Us   Google Translate™

NYS Comptroller

THOMAS P. DiNAPOLI

Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Village of Wolcott – Clerk Treasurer’s Misappropriation of Funds and Board Oversight (2012M-32)


Released: May 10, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine if the Clerk-Treasurer made only proper payments from Village funds and if the Board provided adequate oversight of the Village’s financial operations for the period June 1, 2009, to December 19, 2011.

Background

The Village of Wolcott is located within the Towns of Butler and Wolcott in Wayne County. The Village is governed by a Board of Trustees (Board) which comprises four elected Trustees and an elected Mayor. The general fund’s 2011-12 budgeted appropriations are $920,818.

Key Findings

  • The former Clerk-Treasurer took advantage of weaknesses in the Village’s internal control structure, and misappropriated approximately $68,000 of Village funds by making unauthorized payments to herself. The Village has referred the misappropriation of Village funds to law enforcement officials for investigation.
  • The Board created or allowed an environment which enabled the former Clerk-Treasurer to conceal the misappropriation of Village assets for more than four years. We found that the Board failed to provide sufficient oversight of the Village’s financial operations. The Board allowed the Clerk-Treasurer to perform all duties related to cash disbursements without oversight.

Key Recommendations

  • Take appropriate action to recover all misappropriated moneys.
  • Evaluate and, where practicable, assign duties and responsibilities to provide for proper internal controls, or establish sufficient compensating controls, such as increased oversight.

Local Government and School Accountability Contact Information:

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