New York State Comptroller Thomas P. DiNapoli today announced the following local government audits were issued.
The board did not provide adequate oversight of the disbursement process and exceeded its authority under New York State Town Law by authorizing insurance claims and annual contracts to be paid before audit and approval. The board also exceeded its authority by allowing a third-party vendor direct access to the town’s bank account that, at times, had more than $500,000 on deposit. In addition, the board allowed debit cards to be used, which resulted in a circumvention of the town’s disbursement controls. Auditors found that the 142 disbursements totaling $142,200 they reviewed were for proper purposes and adequately supported. However, the board did not audit and approve 53 of these claims totaling $15,600 before payment as required.
The board did not provide adequate oversight of the treasurer’s financial operations. The board also did not know the treasurer did not comply with water and sewer village laws and codes which resulted in $29,300 in penalties not being assessed. The board did not implement sufficient compensating controls to minimize the risks associated with the lack of segregation of duties within the treasurer’s office. In addition, the board did not approve or authorize anyone to approve billing adjustments for water and sewer bills nor did they require adjustments to be documented and retained. Auditors also found the board did not perform required annual audits. The last required audit was conducted in 2016.
Otsego-Northern Catskill BOCES officials did not properly monitor and account for 66% of the 76 fixed assets auditors examined, including security cameras, computers, tools and equipment. Auditors found 30 assets totaling more than $104,000 did not have required asset tags. Eight assets totaling more than $12,000 were not added to the inventory list. Three assets totaling more than $6,000 were not located. Seven assets totaling $18,600 were found at different locations than shown on the inventory list.
The court properly accounted for, deposited, disbursed and reported fines and fees examined. There were no recommendations in this audit.
Corporation officials did not provide adequate approval and oversight of the revolving loan program. Auditors reviewed six of the 11 loans that were approved and paid but found they lacked required documentation of a commercial loan denial letter. The director did not adequately follow up with seven of the 14 businesses to verify that funds were used for the approved purpose. Loan agreements do not have job creation or retention enforcement mechanisms. Business job creation and retention numbers were not verified.
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