New York State Comptroller Thomas P. DiNapoli announced the release of several audits focusing on local government and school operations, highlighting issues in financial oversight, payroll management, capital project supervision, lead remediation efforts in schools, and credit card usage.
According to DiNapoli’s office, a comprehensive review of a village’s finances began in 2022. The audit found that the clerk-treasurer had managed the village’s financial operations without any oversight. This lack of supervision enabled her to misappropriate more than $1.1 million over 19 years. Following an investigation stemming from the audit, the former clerk-treasurer resigned in March 2023, was arrested in November 2023, and charged with misappropriating funds and making unauthorized payments. In May 2024, she pleaded guilty to first degree corrupting the government and received a sentence of three to nine years in state prison in August 2024. As part of her sentence, she forfeited her monthly public pension—the first time a public official in New York has surrendered their pension for corruption while in office.
The released audits detailed several findings:
The former clerk-treasurer failed to properly deposit or record village funds and used them for personal gain. She made questionable expenditures and unauthorized payroll payments while neglecting to keep accurate records or provide required reports to the board. These actions resulted in about $5,000 in penalties and interest due to late payroll filings.
The board overseeing these finances did not provide adequate oversight or monitor budgets effectively. Auditors found that they did not obtain regular financial reports or investigate anomalies reported by an outside accountant. They also failed to perform effective claims audits or annual reviews of the clerk-treasurer’s records.
Audits revealed further problems with payroll practices. The board did not ensure accurate wage payments or proper leave benefit administration for employees during the period reviewed. Overpayments totaling nearly $342,000 were identified along with attempts by the former clerk-treasurer to pay herself additional sums beyond what was authorized.
Regarding capital projects, auditors found that officials failed to develop formal budgets or timelines for renovating a church into a new town hall and food pantry. The board also did not oversee competitive bidding as required or ensure permits were obtained for work done under six change orders worth over $65,000; more than $930,000 was paid out without sufficient documentation confirming contract compliance.
Employee compensation was another area scrutinized by auditors. While salaries appeared generally correct according to authorization documents, time records often lacked signatures or details about hours worked; supervisors did not consistently review these records before payment as required by law. Separation payments totaling over $128,000 were given out after retirement but calculations supporting these amounts sometimes lacked consistency with collective bargaining agreements or supporting documentation—resulting in nearly $74,000 labeled as questionable or unsupported benefits.
Several school district audits focused on compliance with state laws regarding lead testing in potable water outlets:
– One district failed to sample or exempt 61 out of 322 water outlets due to inadequate planning.
– Another district left 115 out of 178 outlets untested; among those tested, one-third exceeded lead action levels but remedial actions taken were not documented as required.
– A third district missed sampling 20 shower and bathroom outlets; it also did not effectively remediate some outlets where high lead levels were found nor report results promptly.
– In yet another case, officials did not test nearly two-fifths of identified water outlets nor adequately document which outlets had been exempted from testing or how controls would prevent their use if unsafe; eight out of thirty-one remediated outlets still had inadequate measures taken according to Department of Health guidance.
Finally, auditors reported that credit card purchases at one institution were often inadequately supported: there was no adopted policy guiding use of thirteen cards issued among staff members. More than $113,000 across hundreds of charges lacked proper approval documentation; reward points accrued on these cards could not be traced back to specific users or purposes.
“DiNapoli’s office began a comprehensive review, comprised of three audits, of the village in 2022 and found the clerk-treasurer had been running the financial operations of the village with no oversight.”
“As a result of the Comptroller’s audit and subsequent investigation, the former clerk-treasurer…was arrested…and charged with misappropriating funds and making unauthorized payments totaling more than $1.1 million over a 19-year period.”
“In May 2024, she pleaded guilty…and was sentenced…to three to nine years in state prison…”
“As part of her sentence…the former clerk-treasurer was required to forfeit her monthly public pension…”
“This sentence represents the first time a public official in New York surrendered her pension as a penalty for corruption while in office.”
