New York State Comptroller Thomas P. DiNapoli today announced the following local government and school audits were issued.

Village of Ocean Beach – Credit Card Usage (Suffolk County)

The village board did not ensure that employees appropriately used village credit cards, and as a result, employees made questionable purchases. Auditors reviewed all 3,108 credit card transactions paid during the audit period totaling $371,826 and found that 2,866 transactions totaling $356,610 (92%) did not comply with village policy. For example: transactions totaling $39,093 did not have any receipts included with the claims packets; and $317,517 did not have a signed receipt or credit card slip. Examples of purchases include: $134,742 from a home improvement store; $25,140 from an online retailer; and $23,242 for furniture and appliances. Without oversight and itemized receipts, the board could not determine whether purchased items were appropriate and for village purposes.

Barker Central School District – Payroll (Niagara County)

Employee compensation payments were not always accurate, approved or supported. District officials did not ensure the pay rates were accurate or overtime was approved and supported. Therefore, payroll errors went undetected and resulted in unnecessary and erroneous payroll payments. Auditors determined that seven employees were paid amounts that were inconsistent with board-approved contracts or collective bargaining agreements (CBAs), resulting in erroneous compensation calculations totaling $3,131 and one employee was paid $2,948 for overtime despite language in the individual’s employment agreement indicating he was not eligible to receive overtime payments. In addition, one employee was paid $657 in overtime work that was not preapproved as required and 10 employees were paid $26,297 for overtime without being required to seek preapproval per their CBAs or district policy.

Town of Jay – Records and Reports (Essex County)

The supervisor did not maintain complete, accurate and timely accounting records, and inadequate financial reports were provided to the board. As a result, the board lacked reliable records and reports to manage the town’s financial operations. Of the 15 asset and liability accounts reviewed as of Dec. 31, 2021 and Oct. 31, 2022, five were overstated by a total of $19,037 and 13 accounts were understated by a total of $269,353. In addition, of the 10 revenue accounts reviewed, two were overstated by a total of $927,546 and two were understated by a total of $18,317 and of the ten expenditure accounts reviewed, two were overstated by a combined total of $182,370 and two were understated by a total of $6,091. Lastly, seven capital projects were completed but not closed in the accounting records and bank reconciliations were not prepared monthly or properly prepared for all bank accounts.

Sewanhaka Central High School District – Information Technology (IT) Contingency Planning (Nassau County)

District officials did not develop an IT contingency plan to help them adequately secure and protect business office IT systems in the event of a disruption or disaster. Without a comprehensive written IT contingency plan in place, district officials have less assurance that employees and other responsible parties will react quickly and effectively to maintain business continuity. As a result, important financial and other business office data could be lost, or the district could suffer a disruption to operations. Additional sensitive IT control weaknesses were communicated confidentially to district officials.

West Webster Fire District – Financial Management (Monroe County)

The board did not effectively manage fund balance or ensure that the treasurer provided adequate and accurate financial reports. As a result, the board was not transparent with taxpayers and levied more taxes than needed to fund operations. As of Dec. 31, 2021, recalculated unrestricted fund balance was $1.8 million, which was unreasonable and sufficient to cover 50% of the 2022 appropriations. The board also did not adopt realistic budgets. For example, revenues were underestimated by nearly $1.2 million (11%) for 2019 through 2021 and none of the $150,400 of appropriated fund balance was used. In addition, the district did not have a written multiyear financial plan and comprehensive capital plan, which inhibited the board and district officials from effectively managing finances and addressing future operating and capital needs.

City of Yonkers – Budget Review (Westchester County)

The Office of the State Comptroller, as Fiscal Agent for the City of Yonkers, determined that the city’s adopted budget for fiscal year 2023-24 and the related justification documents are in material compliance with the requirements of the Fiscal Agent Act. The city’s 2023-24 budget, which totals $1.43 billion, includes operating and debt service funding of $733.8 million for the Yonkers Public Schools and $698.2 million for the city. The 2023-24 budget is $52.1 million more than the city’s budget for 2022-23, an increase of 3.8%. The city relies on nonrecurring revenue of $141.5 million, such as appropriated fund balance, one-time state funding, and sale of property, to balance its 2023-24 budget and could face a total shortfall of approximately $5.7 million if revenue estimates are not realized. The city plans to borrow up to $15 million for tax certiorari settlements in the 2023-24 fiscal year. In addition, the city council should be mindful to ensure appropriations are sufficient for any potential liabilities when contract agreements for collective bargaining agreements are reached as the city’s contingency reserve is less than 1% of the city’s general fund budgeted appropriations; leaving limited flexibility to cover any other unforeseen or unexpected costs. Lastly, over the last 10 years, the city’s outstanding debt has grown 35%, debt service payments have risen 35.2% and the city will need $99.2 million to service its debt obligations during 2023-24.

Addison Central School District – Procurement of Professional Services (Steuben County)

District officials did not seek competition for most professional services in accordance with district policy. District officials paid approximately $365,000 to 12 of the district’s 14 professional service providers without seeking competition. In addition, they did not solicit a request for proposal for audit services within the last five years as required by state law. Officials have also consistently used the same construction management company since 2004 and bond counsel since 2002. Because officials did not always seek competition for professional services or seek competition in a timely manner, they cannot assure taxpayers that services were procured in the most economical way and without favoritism.

Town of Middleburgh – Claims Audit Process (Schoharie County)

The board did not properly audit claims prior to approving them for payment. As a result, the risk is increased that claims could have been paid for inappropriate purposes. Auditors determined from a review of 184 claims totaling $340,204 that the board approved all claims without a thorough and deliberate review, that eleven debit card purchases totaling $2,425 were not approved by the board prior to purchase, two of which were unsupported and that four claims totaling $10,064 were approved without evidence of compliance with the town’s procurement policy.