Comptroller DiNapoli Releases Municipal Audits
New York State Comptroller Thomas P. DiNapoli today announced his office completed audits for the Bolivar Fire Department Inc., the Town of Bombay and the North Castle South Fire District No. 1.
"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."
Bolivar Fire Department Inc. - Internal Controls Over Cash Receipts and Disbursements (Allegany County)
The former treasurer appears to have misappropriated department funds in excess of $5,000. This occurred because the department had virtually no controls over cash receipts and disbursements. The board did not effectively segregate the former treasurer's duties or implement compensating controls. In addition, the board did not approve claims prior to payment or enforce the use of its "Payment Approval" form. Had they done so, they would have realized that department funds were being used for non-department purposes, and possibly prevented it.
Town of Bombay - Long-Term Planning for Casino Compact Revenues (Franklin County)
Auditors found that the board did not adopt a comprehensive multi-year financial and capital plan for casino compact revenues, and did not include estimates of the revenues or proposed uses in the annual budgets for the years 2007 through 2011. Instead, the board relied on the plans submitted to the Economic Development Corporation and corresponding board resolutions to provide a general summary of the intended use of casino compact revenues.
North Castle South Fire District No. 1 - Financing and Procurement of a New Fire Truck (Westchester County)
The board followed state law and the district's procurement policy for the purchase of the new fire truck. The district advertised for public bid in its official newspaper. Although the board did not award the bid to the lowest bidder, it documented its justifications for its decision. However, the board, in its attempt to reduce the cost of the new truck, actually incurred additional costs of $6,321. Of the total amount to be paid, $412,932 was to be withdrawn from the capital reserve account. This withdrawal required an early liquidation of the CDs, which resulted in an early withdrawal penalty of $6,321. The board took this action without determining whether it was legally permitted to make an advance payment for goods not received and inspected.