Pursuant to a court order, certain assets may be provided to the court and then delivered to the Commissioner of Finance (Commissioner) for safekeeping. Payments made pursuant to court orders commonly involve surplus money from foreclosures and contract disputes resulting in a mechanic’s lien.1 These actions are recorded in the County Clerk’s office when payments are deposited as required by court order. Additionally, in certain circumstances,2 funds from estates are entrusted to the Commissioner for safekeeping by order of the Surrogate’s Court. Together, the Commissioner, County Clerk and Surrogate’s Court must develop sound procedures and processes which, when implemented properly and consistently, provide a system of internal controls to account for and safeguard these funds.
Our objective was to determine whether County officials have established appropriate controls to safeguard and account for court and trust funds. We examined records maintained by the Commissioner, County Clerk and Surrogate’s Court. We interviewed County officials and reviewed relevant financial and court records. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions. The scope of our review does not constitute an audit under generally accepted government auditing standards (GAGAS).
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1 Security interest in property filed to ensure payment for contracted services rendered on the property.
2 When the whereabouts of any person entitled to payment from the estate is unknown.