New York State Comptroller Thomas P. DiNapoli has released a series of audits examining the financial management and compliance practices of several local governments and school districts.
According to DiNapoli’s office, a comprehensive review of one village began in 2022, uncovering that the clerk-treasurer had managed financial operations without oversight. The audit and subsequent investigation led to the former clerk-treasurer’s resignation in March 2023, her arrest in November 2023 on charges of misappropriating more than $1.1 million over 19 years, and her guilty plea in May 2024 to first degree corrupting the government. She was sentenced to three to nine years in state prison in August 2024 and required to forfeit her monthly public pension—the first time a New York public official has surrendered a pension as a penalty for corruption while in office.
The audits detailed that the former clerk-treasurer failed to properly deposit, record, report, or disburse village funds, resulting in revenue collections misappropriated totaling $925,757, questionable expenditures of $94,562, and unauthorized payroll payments amounting to $341,992. Inadequate accounting records and untimely payroll reporting resulted in about $5,000 in penalties and interest.
Auditors found that the village board did not provide sufficient fiscal oversight or monitor budgets effectively. They did not investigate anomalies reported by an outside accountant or perform required audits of claims or annual reviews of records. This lack of oversight allowed financial misconduct to go undetected.
In reviewing employee compensation practices as of March 2023, auditors noted overpayments totaling $341,992 made by the former clerk-treasurer—including inappropriate payments to herself—and attempts at further unauthorized payments. The board also failed to ensure adherence to established policies regarding leave benefits.
The Town Hall capital project was another area where auditors found weaknesses. The board did not establish an estimated project cost or itemized budget for renovating a church into a new town hall and food pantry. There was no formal timeline or proper competitive bidding process for part of the project. Required permits were sometimes missing; inspections were incomplete; six change orders worth $65,537 were approved after work was done; and about $930,000 was paid out without adequate documentation confirming completion according to contract terms.
Salary payments were generally authorized correctly but lacked supporting time records or supervisor review as required by law. Overtime documentation was inconsistent with collective bargaining agreements (CBA), and separation payments totaling $128,254 made upon retirement were sometimes unsupported by employment agreements or local enactments—leading auditors to identify questionable separation benefits totaling $73,877.
School district audits revealed recurring issues with compliance regarding lead testing in potable water outlets:
– In one district reviewed by auditors, 61 out of 322 water outlets (19%) were neither sampled nor properly exempted from testing due to lack of a sampling plan.
– Another district failed to sample or exempt 115 out of 178 outlets (65%). Of those tested, one-third exceeded action levels for lead; remedial actions taken were not documented as required.
– A third district left 20 outlets untested (16 showers/four classroom bathroom sinks) out of 521 identified outlets; remediation efforts for many failing outlets were insufficiently documented.
– In yet another case, officials did not test or exempt 95 out of 246 water outlets (39%), omitted details from their remedial action plan per Department of Health guidance [https://www.health.ny.gov/environmental/water/drinking/lead/lead_testing_of_school_drinking_water.htm], and failed adequate remediation on some problem fixtures.
Across these cases auditors cited failures such as missing sampling plans; incomplete remedial action plans; delays notifying health departments—sometimes averaging more than two weeks past deadlines—and inadequate communication with staff and parents when elevated lead levels were detected.
Another audit found that credit card purchases within one school district often lacked proper approval or supporting documentation showing they served legitimate school purposes. There was no adopted policy governing use among officials holding thirteen credit cards: Of eighteen general purpose card payments reviewed ($134,982 total), twelve lacked necessary signatures; reward points accrued during this period could not be accounted for by officials responsible.
“DiNapoli’s office began a comprehensive review…and found the clerk-treasurer had been running the financial operations…with no oversight,” stated his office’s summary release.
“This sentence represents the first time a public official in New York surrendered her pension as a penalty for corruption while in office,” according to DiNapoli’s statement.
