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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

Town of German Flatts - Financial Condition and Conflict of Interest (2019M-222)

Released: February 14, 2020 -- [read complete report - pdf]

Audit Objective

Determine whether the Town Board:

  • Adequately managed the Town’s financial condition, and
  • Ensured that Town officials did not have prohibited interests in Town contracts.

Key Findings

  • The Board has not adequately managed the Town’s financial condition. The combined fund balance of the four main operating funds declined $144,719, from a $57,650 deficit balance at the end of 2014 to a $202,369 deficit balance of at the end of 2018.
  • The Board has not adopted multiyear financial and capital plans.
  • A Board member had a prohibited interest in Town contracts totaling approximately $782,100.

Key Recommendations

  • Develop and adopt budgets with realistic estimates of revenues and expenditures based on historical trends or other known factors.
  • Develop and adopt multiyear financial and capital plans.
  • Ensure that officials and employees are familiar with and follow the requirements General Municipal Law as they relate to conflicts of interest.

Town officials agreed with our recommendations and indicated they planned to take corrective action.

Background

The Town of German Flatts (Town) is located in Herkimer County (County). It is governed by the Town Board (Board), which is comprised of the Town Supervisor (Supervisor) and four council members. The Board is responsible for the general oversight of the Town’s operations and finances, including adopting annual budgets.

The Supervisor serves as the Town’s chief fiscal officer and budget officer. The Town has an outside accountant who assists the Supervisor with maintaining the accounting records and preparing financial reports.

Quick Facts
Employees27
Population13,258
2019 Appropriations$2.5 million

Audit Period

January 1, 2018 – June 30, 2019.
We extended our audit period back to December 31, 2014 for trend analysis.


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