New York State Comptroller Thomas P. DiNapoli announced the release of several audits focusing on local governments and school districts across the state.
The audits highlighted various shortcomings in financial management and compliance with regulations. One audit found that while a county’s investments were legal, safe, and liquid, officials did not develop or manage a comprehensive investment program. They also failed to monitor investments, solicit interest rate quotes, or consider other legally permissible options. The audit reported that most available funds—averaging $112 million monthly—were kept in a money market account earning lower interest rates. The report stated: “Had officials managed a comprehensive investment program, solicited interest rate quotes and deposited funds into a bank account or an investment option already used by the county, officials may have realized additional earnings ranging from $5.1 to $10.6 million.”
In another municipality, the town supervisor did not keep complete or accurate accounting records and reports, leaving the board without reliable information for managing finances. The supervisor also failed to identify discrepancies between recorded cash balances and adjusted bank balances due to inaccurate bank reconciliations. As of December 31, 2023, three bank accounts totaling $105,091 were not included in records, and three others showed adjusted balances exceeding recorded amounts by $513,735. Auditors identified about $440,000 in recordkeeping errors contributing to this difference.
A school district was found lacking proper recording and accounting for its capital assets. “District officials did not properly record and account for all of the district’s capital assets,” according to the audit findings. The absence of a designated property control manager meant no one was responsible for tracking assets or ensuring information was current and accurate. Auditors reviewed 30 purchases totaling 96 assets; 78 assets worth $419,538 were missing from inventory lists.
The board overseeing financial assistance projects did not properly approve or monitor these initiatives. According to auditors: “The board did not develop and adopt, by resolution, uniform criteria for the evaluation and selection for each category of projects to be provided financial assistance… Of the nine approved projects reviewed, a written CBA was not prepared for four of the projects.” For those with CBAs prepared, required information was incomplete.
In another town government review, auditors found that supervisors failed to maintain accurate accounting records or provide effective oversight of clerks maintaining these records. Inaccuracies led to errors in reports given to board members throughout the audit period. Additionally: “The board also did not audit, or contract with an independent public accountant to audit, the supervisor’s records for 2023.”
One municipal board failed to plan or manage a department building capital project effectively. There was no written multiyear plan or budget created for this project; as a result approximately $243,500 was spent on property and services that may never be used. Property purchased more than five years ago remains undeveloped with no formal plans in place; precast concrete wall blocks costing $85,000 two years ago have yet to be delivered.
A final audit noted noncompliance with state law regarding lead testing in potable water outlets at a school district facility: “District officials did not properly identify, report or implement needed remediation to reduce lead exposure in all potable water outlets as required by state law…” Of 665 water outlets identified by auditors, 178 (27%) had either not been sampled or properly exempted due to lack of planning and documentation.
These audits reflect ongoing efforts by New York State authorities to ensure transparency and accountability within local governments and schools.
