State Comptroller Thomas P. DiNapoli has released a series of audits evaluating the financial practices and oversight of several local governments and school districts across New York State.
The audits highlight significant issues in multiple municipalities. In one city, auditors were unable to fully assess revenue and expenditure projections due to incomplete and outdated accounting records. The city’s most recent Annual Financial Report for 2023 was submitted, but the 2024 report was overdue as of April 30, 2025. Independent audited financial statements for 2024 were only finalized in October 2025. According to external auditors’ findings from the past three years, the city’s accounting records are unreliable and not current. The findings also indicate that city officials cannot effectively monitor cash flow or operational results, complicating both financial planning and budgeting.
As of December 31, 2024, the city reported deficit fund balances totaling $15.3 million across its general, water, wastewater, refuse, and boardwalk funds. The city’s financial situation worsened during the year because its 2025 budget was not structurally balanced and included an unplanned $1.8 million expense for two pumper trucks. With depleted fund balances, options for covering increased operating costs are limited. Officials do not plan to raise water or wastewater rates despite ongoing deficits in those funds. The proposed tax levy increase for the 2026 budget is $198,675 (2%), which would use up over 86% of the city’s constitutional tax limit—leaving little room for future tax increases.
In another district audit, officials failed to maintain accurate capital asset records. While assets worth $1.7 million were inventoried, inventory records lacked detail necessary for safeguarding these assets. Assets valued at $196,089 were not inventoried at all; items worth $42,314 could not be located; and many IT assets did not have serial numbers or current locations listed.
Another town’s board had not developed multiyear financial plans or policies regarding fund balance or reserves. This led to unrestricted fund balances accumulating without clear goals or documentation about future needs or expectations for these funds. Without such planning documents in place, transparency about maintaining adequate fund balances and improving capital assets is reduced.
A separate audit found that a town board did not manage its fund balance effectively despite holding large unrestricted reserves. The board exceeded tax levy limits each year from 2022 through 2025 while increasing property taxes by a total of 18%. As of December 31, 2024, these reserves could cover several years’ worth of expenses in some funds but were allocated inequitably: sales tax revenues totaling $1.1 million went to town-wide funds instead of outside-village funds between 2022 and 2024.
Budget reviews identified potentially unreasonable revenue estimates—including nearly $1 million expected from state aid—and missing contingency appropriations in all funds. Debt payments appeared overestimated by more than $37,000; retirement system appropriations totaling about $1.3 million and workers’ compensation costs were also improperly allocated among operating funds.
An audit of the Wyoming County Industrial Development Agency (WCIDA) determined that officials calculated Payment In Lieu Of Taxes (PILOT) agreements accurately according to contract terms during the review period.
Finally, a follow-up on a previous audit found that officials in one town had failed to implement any of fourteen recommended improvements related to purchasing procedures and claims auditing processes.
“These audits underscore the importance of sound fiscal management at every level,” said State Comptroller Thomas P. DiNapoli in his announcement.
