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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Carle Place Garbage District – Board Oversight (2012M-04)


Released: April 6, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the District's financial operations for the period January 1, 2010, to June 30, 2011.

Background

The Carle Place Garbage District is located in the Town of North Hempstead in Nassau County. The District is a district corporation of the State, distinct and separate from the Town, and governed by an elected three-member Board of Water Commissioners. The District's total expenditures for fiscal year 2010 were approximately $661,000, of which $627,000 were for garbage collection services.

Key Findings

  • The Board has not adopted a fund balance policy to provide guidance on how much fund balance to maintain or how fund balance will be used while also maintaining sufficient cash flow to fund operations.
  • The Board has not ensured that the District maintained a reasonable level of fund balance or that cash flow was sufficient to meet current obligations. As a result, available fund balance has declined significantly in recent years, to the point that it will negatively impact the District's ability to fund operations in the first two months of 2012.
  • The Board has not adopted a procurement policy, an investment policy, and a code of ethics, as required by law.

Key Recommendations

  • Adopt a policy to establish a reasonable amount of fund balance sufficient to meet the District's short-term operating needs and provide a cushion for unexpected increases in the cost of services.
  • Use prudent budgeting practices when preparing the annual budget, balancing the need to appropriate excess fund balance to reduce taxes and the ability to maintain a reasonable cash flow to finance current operations.
  • Adopt a procurement policy, investment policy and code of ethics.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236