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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

Town of Webb - Financial Oversight and Ambulance Services (2018M-161)

Released: November 30, 2018 -- [read complete report - pdf]

Audit Objective

Determine whether the Board:

  • Effectively managed financial operations.
  • Ensured that ambulance services were provided in accordance with applicable laws.

Key Findings

  • The Board has accumulated excessive fund balances in four operating funds. From 2013 through 2017, unrestricted fund balances increased by nearly 100 to 200 percent.
  • The Board has not adequately segregated cash disbursement duties or implemented compensating controls.
  • The Board allowed a third-party ambulance company to retain and use all fees collected for ambulance services, which is not authorized by law.1

Key Recommendations

  • Develop and adopt budgets with realistic estimates of revenues and expenditures based on historical trends or other known factors.
  • Ensure compensating controls are implemented to address the lack of segregation of duties within the disbursement process.
  • Ensure that all ambulance service fees collected are remitted to the Town.

Town officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.

Background

The Town of Webb (Town) is located in Herkimer County (County). The Town is governed by an elected five-member Board composed of four council members and a Town Supervisor (Supervisor). The Board is responsible for oversight and general management of financial operations. The Supervisor is the chief financial officer and budget officer and is responsible for day-to-day management under the Board's direction.

The Board provides ambulance services to its residents and visitors on a contractual basis with a third-party ambulance company.

Quick Facts
2018 Appropriations$8.4 million
2017 Ambulance Expenditures$220,000

Audit Period

January 1, 2017 – March 31, 2018.

We extended the audit period back to January 1, 2013 to analyze financial trends.


1 New York State General Municipal Law, Section 122-b


Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.ny.gov
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236