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.

Town of Lee - Financial Management (Oneida County)

The board did not effectively manage the general and highway fund balances, allowing excessive unrestricted fund balances to accumulate. At the end of 2024, the general and highway funds had a total of $8.3 million in unrestricted fund balance. When compared to the general and highway fund appropriations in the town's 2025 budget, the amount of unrestricted fund balance could fully fund over three and a half years of operations at current spending levels.

Chenango County - Court and Trust Funds

The treasurer generally established adequate procedures, maintained appropriate records and properly reported court and trust funds. However, the treasurer's court and trust ledger did not contain all required information.

Holtsville Fire District - Financial Management (Suffolk County)

The board did not adopt budgets with reasonable estimates or properly establish and manage capital reserve funds. From 2019 through 2023, the board transferred an additional $1 million into reserve funds. This was 45% more than the $2.2 million in transfers planned, with no indication of the board's plan to use the funds. The district's tax levy increased by $771,762 from 2019 to 2024, meaning that real property taxes may have been higher than necessary. The board developed and adopted budgets that resulted in a total operating surplus of $4.8 million between fiscal years 2019 and 2023. Additionally, the board did not properly establish two capital reserve funds.

Spencerport Central School District - Employee Benefits (Monroe County)

District officials did not always appropriately authorize and accurately calculate separation and unused leave payments, resulting in erroneous payments. Of the separation payments totaling $357,327 reviewed, auditors determined that payments totaling $48,058 were not authorized or accurate. As a result, district officials overpaid three employees a total of $14,213 and underpaid one employee $77 for separation payments. Of the unused leave payments totaling $51,851 reviewed, auditors determined that payments totaling $3,045 were not authorized or accurate. Therefore, district officials overpaid two employees a total of $1,715 for unused leave.

Manhasset Union Free School District - Non-Payroll Disbursements (Nassau County)

While the board and district officials generally ensured that the non-payroll disbursements were adequately supported and for valid district purposes, they did not always ensure that the disbursements were properly audited and approved before officials made the disbursements. Auditors reviewed 15 wire transfers totaling $2.4 million and determined officials properly reviewed and approved them. Auditors also reviewed 50 non-payroll disbursements, including 137 invoices, totaling $379,209, and determined that 10 invoices totaling $26,441 were not properly audited or approved before they were paid.

Village of Cato - Audit Follow-Up (Cayuga County)

A previous audit of the Village of Cato - Water Financial Operations (2023M-145) determined that the board and officials did not effectively manage the financial operations of the water fund, establish adequate reserves or develop long-term financial and capital plans until the Cayuga County Health Department forced the board to submit a plan. The audit included 11 recommendations to help village officials better manage operations and of the 11 audit recommendations, officials partially implemented three recommendations and did not implement eight recommendations.