ALBANY - State Comptroller Thomas DiNapoli’s office completed several municipal and school audits:
Clarksville Volunteer Fire Company – Internal Controls Over Financial Operations (Allegany County)
Although it appears that the company treasurer maintained appropriate financial records, auditors found the fire company board generally does not provide adequate oversight of financial activities. While the treasurer submitted monthly financial reports to the board, he did not submit a comprehensive annual report. Auditors also found the board does not audit bills or approve payments prior to checks being issued.
Town of Homer – Non-Payroll Disbursements (Cortland County)
The town board and supervisor have not ensured that the board approves all non-payroll disbursements. Auditors also found the supervisor appointed the town clerk to act as his bookkeeper although the clerk’s duties are incompatible with the duties of the supervisor’s bookkeeper.
City of Kingston Police Department – Internal Controls Over Selected Department Activities (Ulster County)
Because the police department does not have an effective system for reporting and recording time and attendance, the city potentially overpaid $7,790 to police department employees for time they may not have worked. Auditors found department officials do not review time and attendance schedules and they do not require department employees to document their hours worked. As a result, the city has no assurance that department employees have worked all the hours for which they have been paid or that their leave accrual balances are accurate. Further, police department officials do not always pre-approve non-mandatory overtime or require employees to provide documentation of overtime hours worked.
Village of Sodus – Board Oversight and Claims Audit (Wayne County)
The village board has not established, or reviewed and updated, policies as required by law and sound business practices. In addition, the board did not adopt structurally balanced budgets or require the clerk-treasurer to provide timely monthly financial reports to properly monitor the village’s fiscal condition. The board did not segregate the clerk-treasurer’s duties or institute compensating controls where necessary.
Town of Coventry – Financial Operations (Chenango County)
The former town supervisor made disbursements the board was not aware of, were not adequately supported and were not allowable. The former supervisor had two personal income tax refunds totaling $1,200 deposited into a town bank account and then wrote town checks to himself for the same amount. The town also reimbursed the former supervisor $595 for 100 percent of the usage of a personal cell phone, which he did not use exclusively for town business.
Village of Elba – Water Accountability (Genesee County)
The village lost an average of 49 percent of the water it produced during the period of June 30, 2010 through December 31, 2011. Village officials were not aware of the extent of the water loss because they did not compare how much water is produced with how much water is billed to customers. Water production costs the village more than $18,000 annually.
City of Lockport – Financial Operations (Niagara County)
The city council, mayor, and other city officials did not ensure that the standard elements of a strong internal control framework were in place. City officials have not implemented policies and procedures for IT, including a computer use policy and adequate controls and restrictions over user access to computers, the financial system, and the Internet. Further, city management has not developed adequate procedures for data backup and storage, or a comprehensive disaster recovery plan.
Town of Morehouse – Records and Reports (Hamilton County)
The town board did not provide adequate oversight of the town’s finances. Further, the town supervisor has not maintained revenue accounts in the accounting software or reconciled bank statement balances of cash to the general ledger cash accounts. The town supervisor also failed to submit monthly or annual reports with the board and has not filed required annual update documents with the Office of the State Comptroller for the last four years.
Town of Plainfield – Financial Operations (Otsego County)
The former town supervisor incorrectly recorded expenditures as assets and prepared bank reconciliations that had cash differences up to $50,000. In addition, the supervisor recorded liabilities, outstanding checks and deposits in transit totaling $255,000 that were not substantiated. Finally, nearly $6,000 in bank fees were drawn from town bank accounts without the board’s knowledge or approval.
Mayfield Central School District – Financial Condition (Fulton County)
The district had fund balance in excess of the statutory limit from the 2006-07 fiscal year through the 2008-09 fiscal year. District officials and the school board, however, have taken appropriate action to reduce the fund balance below the statutory limit for the fiscal years ending June 30, 2010 and June 30, 2011. The district has accomplished this by establishing reserves and by using more of the fund balance that it had appropriated.