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.

Port Ewen Fire District - Financial Management (Ulster County)

The board and officials did not properly manage the district's financial operations, including ensuring that the district treasurer maintained adequate accounting records. In addition, the board did not annually review the district's investment policy and seek legal investment options that align with the district's investment needs and benefit taxpayers and which may have resulted in greater investment earnings. For example, the district's investment earnings totaled $968, but had officials solicited interest rate quotes and considered other investment options, they may have realized investment earnings ranging between approximately $42,000 and $51,000.

Schonowe Volunteer Fire Company, Inc. - Audit Follow-Up (Schenectady County)

A previous audit, Schonowe Volunteer Fire Company, Inc. - Board Oversight (2021M-185), determined that the company's board did not develop financial procedures for collections and disbursements, periodically monitor the budget or ensure the constitution (bylaws) were followed. The audit included eight recommendations to help officials monitor and improve the company's financial operations. Although the board and company officials were aware of the prior audit, were familiar with the recommendations and conveyed in the company's corrective action plan what actions they would take to implement the audit's recommendations, the board and company officials did not implement any of the audit's recommendations.

Montrose Fire District - Claims Auditing (Westchester County)

Auditors reviewed 166 claims totaling $712,696 and determined that the board did not properly audit 78 claims totaling $47,836. For example, the board approved 21 claims totaling $23,789 without documentation indicating that the services outlined in the rental agreement were rendered and 13 claims that included sales tax totaling $228. District officials told auditors they were aware that sales taxes were paid on certain purchases and have taken measures to ensure sales taxes are not paid going forward. In addition, the board approved 42 out of 60 credit card claims totaling $5,117 without adequate supporting documentation that purchases were for legitimate district purposes. These claims included purchases totaling $484 made through an online payment system and at a local coffee chain. Although officials claimed that the purchases were fraudulent, they did not provide documentation to support that fraud claims were filed with the bank to dispute the charges. By not properly auditing claims, the board's ability to effectively monitor district financial operations is diminished, and errors and irregularities may continue to occur and remain undetected and uncorrected.

Franklin Square Union Free School District - Website Transparency (Nassau County)

District officials did not ensure the district's website provided the public with transparent and comprehensive financial and administrative information. As a result, the community and other interested parties could not readily access and review district information to make informed decisions.

North Salem Central School District - Audit Follow-Up (Westchester County)

A previous audit - North Salem Central School District Network User Accounts (2022M-140) - determined that district officials did not ensure network user accounts were adequately managed. The audit included three recommendations to help officials monitor and improve the district's monitoring of network user accounts. Of the three audit recommendations, district officials, the IT director and IT staff fully implemented one recommendation and partially implemented two recommendations. Recommendations related to sensitive IT control weaknesses were communicated confidentially to district officials.