The Office of the New York State Comptroller, led by Thomas P. DiNapoli, has released a series of audits examining financial management practices in several local governments and school districts across the state.
One audit found that a town board failed to effectively manage its general and highway fund balances, resulting in excessive accumulation of unrestricted funds. At the end of 2024, these funds totaled $8.3 million. This amount could cover more than three and a half years of operations at current spending levels based on the town’s 2025 budget appropriations.
Another audit reviewed procedures managed by a treasurer regarding court and trust funds. While adequate procedures were generally established and records maintained properly, auditors noted that the court and trust ledger was missing required information.
A separate review focused on a school district board’s budgeting practices from 2019 through 2023. The board transferred an additional $1 million into reserve funds—45% more than planned—and did not clearly indicate how these reserves would be used. During this period, the district’s tax levy increased by $771,762, suggesting property taxes may have been higher than necessary. The adopted budgets resulted in an operating surplus totaling $4.8 million over five years, and two capital reserve funds were not properly established.
Auditors also examined separation and unused leave payments within another district. Of $357,327 in separation payments reviewed, $48,058 were found to be unauthorized or inaccurate. Three employees received overpayments totaling $14,213 while one employee was underpaid by $77 for separation pay. For unused leave payments totaling $51,851 reviewed, errors amounted to $3,045 with two employees being overpaid by a total of $1,715.
Non-payroll disbursements were generally supported and made for valid purposes but were not always audited or approved before payment was issued. Auditors looked at 15 wire transfers totaling $2.4 million—all properly reviewed—and 50 non-payroll disbursements covering 137 invoices worth $379,209; they found that 10 invoices amounting to $26,441 had not been properly audited or approved before payment.
An update was also provided on a previous audit concerning water financial operations in the Village of Cato (2023M-145). That earlier report identified weaknesses in managing water fund finances and developing long-term plans until action was required by the Cayuga County Health Department. Of eleven recommendations made to improve operations following that audit, officials only partially implemented three while eight remain unaddressed.
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