Politics & Government

Poquott Village Audit Shows Insufficient Oversight; Officials Respond

State comptroller completes audit of local village.

Poquott village officials have taken action in response to a state audit that found the village had insufficient check and credit card use policies.

The office of state comptroller Thomas DiNapoli completed an audit of village finances between June and November of 2011, released July 6, finding some monies were "used inappropriately without being detected or corrected."

Among the audit's findings: Checks were being inappropriately signed using a signature stamp or unauthorized officials were signing checks, and some credit card charges were inappropriate. The audit examined 191 transactions over that six month period, questioning expenditures of $104,716. According to the report, 62 of 64 payroll checks were signed with a signature stamp; the remaining two cleared the bank without any signature. According to the report, the village treasurer signed only 30 of the 127 non-payroll disbursement checks, and others were signed by a trustee.

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The audit also examined credit card payments in the amount of $11,785, including charges for a third night's hotel stay for a conference that the state said should only have required two nights. The village responded by saying an additional night was needed due to the demands of travel by car to and from the conference on two occasions, one in 2010 and one in 2011, and that two village officials on one occasion reimbursed the village for one night's stay even though they were not required to do so.

In an email to Patch, Poquott mayor Barbara Donovan said the village has discontinued the use of the signature stamp and has appointed a deputy treasurer authorized to sign checks. She said the village has adopted resolutions regulating travel expenses and credit card usage. She also said the village typically reviews all checks written at each board meeting, which acts as an extra safeguard against unauthorized expenditures.

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"The auditors identified several opportunities for the Village Board of Trustees to improve operations and to strengthen our ability to safeguard Village assets," Donovan said. "The [board] has already addressed the recommendations as noted in the report and has adopted comprehensive cash disbursement policies and procedures."

The Village of Poquott finished 2011 with an operating budget of $567,680. Poquott has a population of approximately 970 residents.

DiNapoli said in a statement that the audits of local governments aim to improve their financial management systems.

"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," he said.


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