New York State Comptroller Thomas P. DiNapoli today announced the following local government audits were issued.
District officials did not always seek competition for professional services in accordance with district policy. As a result, services may not have been procured in the most economical manner and in the best interest of the taxpayers. District officials paid $1.2 million to six professional service providers without seeking competition and used a request for proposals (RFP) process to select certain professional service providers many years ago but did not seek new competition. Officials paid $2.1 million to six professional service providers who were selected based on RFPs issued in 2013 and 2014.
District officials did not establish adequate controls over user accounts and software updates to help prevent against unauthorized use, access and loss. In addition, officials did not periodically review all network user accounts and permissions. Auditors found 58 network user accounts had unnecessary administrative permissions and 111 network user accounts were unneeded and should have been disabled. Officials also did not adopt an adequate comprehensive information technology contingency plan to minimize the risk of data loss or prevent a serious interruption of services.
The board did not provide adequate oversight of financial operations. Specifically, the board did not establish compensation controls to address the lack of segregation of the treasurer’s duties. The board also did not request or receive adequate monthly reports from the treasurer to adequately monitor operations, ensure bank reconciliations were properly prepared, retained and reviewed or ensure all claims paid in advance were for allowable purposes.
The board and supervisor did not effectively manage the town’s financial operations, and were unaware of the town’s true financial position, because the supervisor did not maintain accurate accounting records and reports. In addition, the board did not implement adequate corrective action to address prior audit findings and recommendations, which prolonged significant deficiencies, such as inadequate financial policies, procedures, records and reports. The board also did not conduct, or contract for, an annual audit of the supervisor’s records or establish written multiyear financial and capital plans to adequately manage fund balance.
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