State Comptroller DiNapoli Releases Municipal & School Audits

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

East Norwich Volunteer Fire Company - Fuel Monitoring (Nassau County)

Auditors found that company officials did not properly monitor fuel inventory for loss, waste or misuse. Officials did not accurately record fuel deliveries and usage, review fuel records in a timely manner or perform periodic reconciliations. As a result, 2,936 gallons of fuel, costing $7,603 were not accounted for. Officials also did not verify the accuracy of fuel purchased, ensure records were complete and accurate or reconcile fuel records to confirm proper usage. Discrepancies included 1,128 gallons not recorded, incorrect documentation of vehicle and driver IDs and missing odometer readings.

City of Ithaca - Records and Reports (Tompkins County)

Although transactions recorded in the accounting records and reports auditors reviewed were generally accurate, city officials did not maintain complete and timely accounting records and reports. In addition, the city controller's office did not prepare or provide the council with monthly financial reports, such as budget-to-actual comparisons, cash balances or fund balance estimates, and the city manager did not provide year-end financial reports to the council. Auditors found that over 4,000 transactions totaling approximately $10 million were not recorded in a timely manner and council-authorized budget adjustments exceeding $1 million were omitted. In addition, bank reconciliations for accounts totaling approximately $51 million were not completed timely.

Town of Cato - Supervisor's Records and Reports (Cayuga County)

The supervisor did not maintain complete, accurate and up-to-date accounting records and reports. Auditors found that the board lacked reliable financial information to effectively manage the town's operations, increasing the risk of theft, waste and abuse. The supervisor assigned his duties of accounting records and preparing disbursements and financial reports to an appointed bookkeeper without providing oversight, which resulted in errors, including $348,817 in receipts and $744,572 in disbursements that went unrecorded and were not reported to the board. Bank reconciliations were inadequate, monthly financial reports were incomplete and inaccurate and payroll certification was insufficient, causing overpayments totaling at least $2,600. Additionally, the supervisor did not file the town's annual financial report (AFR) with DiNapoli's office, as required by state law, since 2017. While the bookkeeper filed the 2017 AFR in 2022, the others remain unfiled.

Cincinnatus Fire Department - Financial Management (Cortland County)

Department officials did not ensure financial activities were properly recorded or supported and funds were not adequately safeguarded. Because the department has four subdivisions, each with its own treasurer, there is an increased risk of department funds being lost or misused. Treasurers' records were incomplete, with deposits and disbursements not matching bank statements and six bank accounts lacking any accounting records. One additional account had an accounting ledger that recorded deposits but not disbursements. In addition, hundreds of disbursements and collections lacked supporting documentation or approval.

Monroe 2-Orleans BOCES - MiFi Usage Billings (Monroe County)

The assistant superintendent did not properly monitor and manage MiFi usage billings, resulting in approximately $28,800 in unnecessary service charges for 62 devices. Officials also did not provide timely or accurate information to component school districts, limiting their ability to manage these devices. As a result, many devices were inactive or unnecessary yet continued to generate charges.

Town of Brant - Transparency of Fiscal Activities (Erie County)

The board did not conduct or provide for an annual audit of the supervisor's financial records and reports for fiscal year 2024 in accordance with state law. The supervisor also did not prepare and file the required 2022 through 2024 AFRs with DiNapoli's office. Furthermore, the supervisor did not provide the board with complete, accurate and reliable monthly financial reports, which prevented the board from effectively monitoring the town's financial position and available fund balance to make informed decisions.

Truxton Fire District - Audit Follow-Up (Cortland County)

The review assessed the Truxton Fire District's progress in implementing recommendations in the audit Truxton Fire District - Board Oversight, released in November 2022. The audit determined that district officials did not provide adequate oversight of district financial activities and did not complete mandatory fiscal oversight training. To help officials improve their oversight of financial activities and to complete the mandatory fiscal oversight training, the audit contained 11 recommendations. The board fully implemented one recommendation, partially implemented four, did not implement five, and one was no longer applicable.

Chittenango Central School District - Audit Follow-Up (Madison/Onondaga Counties)

The review was to assess the Chittenango Central School District's progress in implementing recommendations in the audit Chittenango Central School District - Information Technology, released in March 2024. The audit determined that district officials did not adequately manage nonstudent network and local user account access and develop an information technology (IT) contingency plan. To help officials improve their oversight of user account access and develop a contingency plan, the audit contained four recommendations. The board, district officials and the director of technology partially implemented two recommendations and did not implement two recommendations. Auditors also reviewed the district's progress in implementing recommendations related to the sensitive IT control weaknesses and communicated those results confidentially to officials.