Purpose of Audit
The purpose of our audit was to determine whether County officials have established appropriate controls to safeguard and account for court and trust funds for the period January 1, 2021 through January 24, 2024.
Background
Pursuant to a court order, certain assets may be provided to the court and then delivered to the County Treasurer (Treasurer) for safekeeping. Payments made pursuant to court orders commonly involve surplus money from foreclosures and contract disputes resulting in a mechanic’s lien (i.e., a security interest in property filed to ensure payment for contracted services rendered on the property). These actions are recorded in the County Clerk’s (Clerk) office when payments are deposited as required by court order. Pursuant to New York State Finance Law, county treasurers are required to submit a report on an annual basis to the State Comptroller accounting for all money, securities and other properties deposited to courts and ordered into the courts’ custody. Additionally, when the whereabouts of any person entitled to payment from the estate is unknown, funds from estates are entrusted to the Treasurer for safekeeping by order of the County Surrogate’s Court (Surrogate’s Court). Together, the Treasurer, Clerk and Surrogate’s Court must develop sound procedures and processes that, when implemented properly and consistently, provide a system of internal controls to account for and safeguard these funds.
Key Findings
- The Treasurer generally established adequate procedures, maintained appropriate records, and properly reported court and trust funds. However, we identified $239 that improperly remained in the Treasurer’s custody that should have been turned over to the State Comptroller as abandoned property.
Key Recommendations
- The Treasurer should ensure that all money deemed abandoned property is paid to the State Comptroller in a timely manner, as required.