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January 12, 2012


Comptroller DiNapoli Releases Municipal Audits

New York State Comptroller Thomas P. DiNapoli today announced his office completed the audits of the Town of Cortlandt, Gasport Chemical Hose Company, Inc., Irving Fire Department, Inc., Town of Royalton, Village of Sleepy Hollow and the Willing Volunteer Hose Company #1.

"My office's audits of local governments improve their financial management practices," DiNapoli said. "These audits are tools for local officials to make sure proper policies and procedures are in place to protect taxpayer dollars and provide the best possible service these taxpayer dollars can deliver."

Town of Cortlandt – Internal Controls Over Selected Financial Activities (Westchester County)
The board did not establish policies and procedures governing the use of gasoline credit cards. As a result, there is limited assurance that the $86,455 in gasoline purchases made by town employees and officials were for proper town purposes. The Department of Environmental Services (DES) maintains fuel disbursement logs that show quantities of fuel dispensed, but the DES Director did not use the disbursement logs for reconciling perpetual inventory to physical inventory. Therefore, the risk is increased that town diesel fuel could have been misappropriated for personal use.

Gasport Chemical Hose Company, Inc. - Internal Controls Over Financial Operations (Niagara County)
The treasurer did not complete and file Form 990 with the Internal Revenue Service or the annual report of foreign fire insurance premium taxes with the Office of the State Comptroller as required. There is no evidence that the committee or audit committee examined or audited the treasurer’s financial records. The company did not obtain an independent audit as required by statute and there is no evidence that the committee approved bills prior to payment.

Irving Fire Department, Inc. – Internal Controls Over Financial Operations (Chautauqua County)
Although the board minutes do include a list of claims to be paid by the department, there was no evidence that the supporting documentation was reviewed or signed, as required in the by-laws. Debit cards are used by the chief and the treasurer and the board does not conduct an annual audit of the treasurer’s records.

Town of Royalton – Financial Management (Niagara County)
Town officials do not have a comprehensive understanding of financial management, especially concerning interfund financial transactions. Sales tax revenues were improperly allocated and interfund activity was improperly recorded. Therefore, town residents were not treated equitably.

Village of Sleepy Hollow – Selected Financial Activities (Westchester County)
Finance department employees did not always issue pre-numbered duplicate receipts for all cash collections. Three instances were found where payments totaling $1,410 were posted as cash but no documentation was provided to show that cash receipts were deposited into the village bank accounts. In addition, four cash payments totaling $1,558 that were deposited into the village bank account but cash receipts were never posted to the village financial accounting system and two receipts that were posted 13 to 29 business days after they were deposited. The board’s failure to establish written policies and procedures for the police department’s time and accrual records resulted in inaccurate time and attendance and leave time records.

Willing Volunteer Hose Company #1, Incorporated – Internal Controls Over Financial Operations (Allegany County)
The treasurer maintained suitable records to account for financial activities and submitted monthly and annual financial reports to the board. However, the board did not develop written policies and procedures for, or provide adequate oversight of, company financial activity. For two fundraising events, the treasurer could not account for 554 and 196 raffle tickets valued at $2,770 and $980, respectively.



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