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April 26, 2011

 

Comptroller DiNapoli Releases Municipal Audits


New York State Comptroller Thomas P. DiNapoli today announced his office completed audits for the Village of Andover and the Town of New Lebanon.

"My office's audits of local governments improve their financial management practices," DiNapoli said. "These audits are tools for local officials to make sure proper policies and procedures are in place to protect taxpayer dollars and provide the best possible service these taxpayer dollars can deliver."

Village of Andover - Clerk-Treasurer Shortage (Allegany County)
The former clerk-treasurer was responsible for collecting and accounting for nearly $1 million in revenue each year.  A review of village receipts from Jan. 1, 2005 through Sept. 30, 2010 found a cash shortage of $14,418. The former clerk-treasurer was able to divert funds because the board allowed her to perform virtually all financial activities and duties without board oversight.

Town of New Lebanon - Internal Controls Over Selected Financial Activities (Columbia County)
The board did not establish written policies or procedures for wire transfers. Consequently, the supervisor, bookkeeper, and accountant (who is not a town employee) all have online access to the town's bank accounts via a shared user name and password. The town also doesn’t require confirmations from the bank prior to wire transfers being completed. In addition, town officials made purchases of highway materials without properly soliciting or awarding bids, and made procurements of goods and services such as rental equipment without soliciting requests for proposals or written quotes, as required. Finally, internal controls over information technology are not appropriately designed.


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