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June 29, 2010



DiNapoli's Office Completes Local Government Audits

State Comptroller Thomas P. DiNapoli today announced his office completed the following audits:  Town of Perrysburg – Internal Controls Over Selected Financial Operations (Cattaraugus County) and Montgomery County – Internal Controls Over Workers’ Compensation Self-Insurance.

“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.”

Town of Perrysburg – Internal Controls Over Selected Financial Operations
DiNapoli’s auditors found that the town did not have procedures in place to ensure that all moneys received by the clerk were properly receipted, correctly recorded and deposited intact, which creates a risk that receipts could be handled inconsistently or inappropriately. Auditors also noted that town officials had not established procedures to analyze the difference between the amount of water pumped into a particular water district and the total amount billed to residents. Therefore, officials did not know that the 22 percent water loss in the Versailles Water District far exceeded the acceptable water loss percentage of 10 percent. Finally, the town did not separately account for or adequately monitor water district capital project transactions. Instead, the town accounted for capital projects within two of the water district operating funds. In addition, the accounting records did not reflect over $962,000 in loans or $107,000 in interfund liabilities for these projects from 2008, thus overstating the financial position of these activities.

Montgomery County – Internal Controls Over Workers’ Compensation Self-Insurance DiNapoli’s auditors found that the board’s local law governing the county’s workers’ compensation self-insurance plan did not provide guidance on how to classify plan participants that are not towns or villages, and it did not describe how plan costs should be apportioned to these other participants. Furthermore, the county did not have any formal policies and procedures governing the plan administrator’s methodology for calculating participant apportionments, the board did not review the administrator’s method of apportionment, and county officials did not monitor the apportionments. The board also did not establish policies and procedures to ensure that the third-party administrator provided plan participants with information on the process of receiving reimbursements for payments made to employees for their sick leave time while those employees are out of work due to a work-related injury. Finally, the board did not establish any written policies or procedures governing the processing of workers’ compensation claims.

Copies of these audits can be found here: http://www.osc.state.ny.us/localgov/audits/index.htm

If you have any questions or would like a comment from the Comptroller’s office regarding these audits, please call Nicole Hanks at 518-474-4015.

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