Determine whether the Village of Bemus Point (Village) Clerk-Treasurer properly deposited, recorded, reported and disbursed Village funds.
The Clerk-Treasurer did not properly deposit, record, report and disburse Village funds and was arrested in February 2021 and charged with grand larceny, falsifying business records, forgery and official misconduct. In December 2021 she pleaded guilty to petit larceny and paid restitution to the Village.
The Board of Trustees (Board) did not monitor the Clerk-Treasurer’s work, implement compensating controls, or audit the records as required. Specifically, the Clerk-Treasurer did not:
- Properly deposit, record or report taxes collected.
- Issue duplicate receipts or maintain other adequate supporting documentation, therefore we could not determine whether all money collected was deposited.
- Properly record revenues and expenditures, which misstated actual financial results.
- File payroll tax reports or remit payments totaling $40,837. As a result, the Village was assessed penalties and interest of $18,100.
- Provide written financial reports to the Board or file annual financial reports (AUDs) with the Office of the State Comptroller (OSC), as required.
- Maintain complete, accurate and proper accounting records.
- Implement compensating controls, including adequate oversight and audit the Clerk- Treasurer’s records as required.
Village officials agreed with our recommendations and indicated they plan to initiate corrective action.