(Photo via the Town of Marathon).
A recent audit from the New York Office of the State Comptroller (OSC) found the town of Marathon did not properly audit claims. The audit also found the town clerk did not did not record, deposit, remit or report collections in a timely and accurate manner.
Town officials, including town supervisor Timothy Elliott and clerk Doris Adams, acknowledged and agreed with the audits’ findings in official correspondence with OSC and vowed to correct their practices, records show.
In the audit period of Jan. 2021 to Feb. 2022, OSC found the town board was not properly auditing claims prior to approving them for payment. When public entities don’t do that, the audit report states, the risk is increased that claims could have been paid for inappropriate purposes.
In a sample of 100 claims totaling $203,349,68 — claims totaling $116,411 were not audited by the board as required, records show.
Fifty of the claims totaling $120,992 did not have appropriate support such as a voucher, itemized receipt or invoice and 15 of the claims totaling $40,352 were approved without evidence of compliance with competitive bidding requirements or the town’s policy requirements.
OSC’s recommendations, issued earlier this year, include ensuring that all claims have appropriate itemized documentation that backups the auditing.
“In response to these key findings, the board was not reviewing all claims prior to payment,” Elliott said in correspondence with OSC. “We now audit all claims before approval for payment.”
Elliott noted that some claims were paid without an itemized receipt.
“We now require an itemized receipt to be attached to all claims,” he said.
The town will also look to participate in state bids, Elliot noted.
“The board is now going to be more aware of the cost of services and purchases so that we can be in compliance with state and town procurement policies. We are researching participating in state bidding for diesel fuel,” he added.
CLERK AUDIT
The OSC audit from January last year to April this year found that the clerk did not record, deposit, remit or report collections in a timely and accurate manner.
“As a result, the board’s ability to effectively monitor financial operations was diminished,” the audit report states. “Had the board conducted the required annual audits, it may have recognized these deficiencies and taken corrective action. The clerk did not maintain adequate records and supporting documentation, including a cash book or duplicate receipts for all transactions and did not prepare monthly bank reconciliations and verify the accuracy of the financial records.”
OSC found that the clerk’s bank account balance was $6,251 more than it should have been as of April 21.
“Had the board conducted the required annual audits, it may have recognized these deficiencies and taken corrective action,” OSC auditors noted.
The recommendations section of the audit suggested the clerk maintain adequate records, books and related supporting documentation and deposit, remit and report collections to the appropriate parties in a timely manner.
“The clerk should also prepare monthly bank reconciliations and accountabilities,” OSC auditors said. “The town board should also arrange for audits of the clerk’s records.”
Adams responded with a letter to OSC.
“I was trained by the former town clerk over 30 years ago and I was not aware I have been in error with some of the records’ procedures,” she said. “I immediately implemented the verbal recommendations suggested by the auditors prior to receiving the draft report and now continue to do all these things as part of the monthly routine.”
Adams vowed to receive formal training, noting she has attended online training on things like the town’s referendum process and a marriage license seminar. She also said she’d use the 2021 town clerk manual as a reference going forward.
“I have already implemented the verbal recommendations of the auditors in regards to issuing duplicate receipts, detailed deposit slips, remitting dog license by the fifth of every month, reconciling bank statements, and maintaining a monthly cash book record,” she said.
In the last four-to-six months, Adams said, she has used software to document all monthly receipts including cash and checks transactions.
“This program also maintains a cash book,” she said.
In April 2022, Adams said, the town started issuing receipts for all collections, including dog licenses, marriage licenses, building permits, certified copies, and miscellaneous revenues.
Lastly, Adams said she is making duplicate copies of any deposit slips.
