New York State Comptroller Thomas P. DiNapoli has released a series of audits examining the financial and operational practices of several local governments and school districts across the state.
The audits found that in one town, the board did not receive complete or accurate financial records from both current and former supervisors. The board also failed to request additional information, which limited its ability to monitor the town’s financial condition. This resulted in a combined fund balance deficit of $206,637 at the start of fiscal year 2024 for general, town-wide, and highway funds. Additionally, from 2019 through 2023, the board appropriated $315,279 in nonexistent fund balance and used $350,000 in revenue anticipation notes to manage cash flow issues, incurring $11,430 in borrowing costs.
In another case involving a village water treatment plant (WTP), officials did not properly approve or control overtime costs for employees. Between June 1, 2021 and November 22, 2024, WTP operators worked under three different schedules that led to overtime expenses totaling $338,108—representing between 28% and 32% of total wages paid each year out of approximately $1.1 million. The chief water operator was responsible for most non-weekend overtime hours and accounted for $89,667 (63%) of these costs. Overtime hours were not approved beforehand by department leaders as required by policy.
One school district audit revealed that despite knowing district policy prohibited personal use of district-purchased assets, the superintendent directed a manager to buy about $1,300 worth of food for a private event. Separately, the manager purchased an additional $100 worth of food for another private event without involvement from the superintendent. Both purchases were later reimbursed by those involved. Auditors found that the remaining 267 purchases reviewed—totaling around $541,000—were appropriate.
Auditors also found weaknesses in claims auditing at another district. Of 1,467 claims totaling $24.2 million reviewed by auditors (266 claims totaling $7.7 million), they determined that supporting documentation was insufficient for approval on 230 claims worth $6.5 million (86%). Fourteen BOCES-related claims ($5.2 million) were also not properly audited due to conflicts with employee roles.
Several school districts were cited for failing to meet state law and Department of Health regulations regarding lead testing in potable water outlets:
– In one district, auditors found that out of 567 outlets identified at selected areas, 207 (37%) were either not sampled or improperly exempted; remedial action was lacking for many outlets exceeding lead limits.
– Another district had similar issues: Of 76 outlets identified at select areas, nearly half were not tested or exempted correctly; some outlets with high lead levels lacked clear remedial action plans.
– A third district failed to sample or exempt nearly half its identified outlets; among those tested, almost a quarter exceeded lead action levels—with over half still in service without evidence of remediation or notification as required by law.
A review conducted on the City of Poughkeepsie Industrial Development Agency (IDA) assessed progress since recommendations made following a July 2022 audit on project approval and monitoring practices. The IDA implemented five recommendations fully and partially implemented one more; one recommendation was not implemented while status could not be determined on another due to no new agreements since the initial audit.
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