State Comptroller Thomas P. DiNapoli has released a series of audits examining the financial management and oversight practices of local governments and school districts in New York.
One audit found that a district board and its officials did not properly manage financial operations, particularly in ensuring that the district treasurer maintained adequate accounting records. The report also noted that the board failed to annually review the district’s investment policy or seek legal investment options aligned with the district’s needs. As a result, while the district’s investment earnings were $968, auditors indicated that by soliciting interest rate quotes and considering other options, earnings could have ranged from approximately $42,000 to $51,000.
A separate audit reviewed actions taken by Schonowe Volunteer Fire Company, Inc., following an earlier report (2021M-185) which highlighted issues such as lack of financial procedures for collections and disbursements and insufficient monitoring of budgets or adherence to bylaws. Despite being aware of these recommendations and outlining corrective actions in their plan, neither the board nor company officials implemented any of them.
In another case, auditors examined 166 claims totaling $712,696 and determined that 78 claims worth $47,836 were not properly audited by the board. Among these were 21 claims totaling $23,789 approved without documentation showing services had been rendered according to rental agreements and 13 claims including sales tax payments amounting to $228. District officials acknowledged awareness of sales taxes paid on certain purchases and stated they have since taken steps to prevent future occurrences. Additionally, 42 out of 60 credit card claims totaling $5,117 lacked adequate supporting documentation for legitimate district purposes; some included purchases through online payment systems and at a local coffee chain. Officials asserted these were fraudulent but did not provide evidence that fraud claims had been filed with banks to dispute charges. The audit concluded that inadequate claim auditing reduces the board’s ability to monitor finances effectively and may allow errors or irregularities to persist undetected.
Another finding showed that some districts did not ensure their websites provided transparent or comprehensive financial information for public access. This limited community members’ ability to review information needed for informed decision-making.
An additional audit addressed network user account management at North Salem Central School District (2022M-140). Of three recommendations made previously regarding IT controls, one was fully implemented while two were partially completed by district officials, including IT staff and directors. Details related to sensitive IT control weaknesses were communicated confidentially.
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