August 18, 2010
DiNapoli's Office Completes Audit of Town of Marilla
New York State Comptroller Thomas P. DiNapoli today announced his office completed the audit: Town of Marilla - Internal Controls Over Selected Financial Activities.
“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. Officials in Marilla must put proper controls in place to ensure taxpayer dollars are used more efficiently.”
DiNapoli’s auditors found that the town improperly paid $20,000 in December 2007 to an incorporated fire company for the stated purpose of purchasing a generator. However, town officials stated that the $20,000 was actually loaned to the fire company even though the fire company never received a generator.
Auditors from DiNapoli’s office found that in June 2008, the town received $20,000 from a resident to whom the town had granted a special-use permit with the condition that he donate $20,000 to the fire company. DiNapoli’s auditors noted that the payment of taxpayer money is improper without a statutory or contractual obligation to do so, or without receiving any goods or services in return for the payment. Further, the misleading record of the transaction intentionally circumvented internal controls and compromised the transparency of town operations.
Further, the board did not properly audit claims, instead delegating this responsibility to two board members.
DiNapoli's auditors also found that officials did not properly bid two purchases totaling approximately $90,500 and that the town spent over $182,000 for professional services procured without the benefit of competition, and did not have formal written agreements with the providers.
For a full copy of the audit, see: http://www.osc.state.ny.us/localgov/audits/towns/2010/marilla.pdf
If you have any questions, or would like a comment from the Comptroller’s press office regarding this audit, please call 518-474-4015, or send an email to email@example.com.