State audit faults village
Mayor blames previous administrations for lax accounting
The Daily Mail
July 8, 2009

COXSACKIE — The Coxsackie Village Board lacked sufficient oversight between 2004 and 2008, leading to a number of “Unplanned operating deficits” in its general, water and sewer funds, according to an audit conducted by the Office of the State Comptroller released Tuesday.

The audit showed that the balance of unreserved funds in the water, sewer and general funds declined 83 percent from a balance of $678,000, reported on May 31, 2004, to $118,600, reported on May 31, 2008, the report read.

“The lack of cash flow projections leaves the Village vulnerable to unanticipated, last-minute transfers of cash that may or may not be available from other funds,” the report stated.

The decline can be accounted for by overestimating revenues and/or overspending appropriations, according to the report.

For example, water fund revenues were overestimated by more than $183,000 in the 2007-08 fiscal year. Funds were overspent during the previous year by more than $116,000, the audit report read. Sewer fund revenues were overestimated by $238,000 in the 2006-07 fiscal year and by $241,000 the following year. Auditors attribute the decline in the general fund to operating deficits during the 2004-05 and 2005-06 fiscal years.

The State Comptroller’s Office recommended that the Village Board exercise stronger internal controls over finances, segregate the duties of cash collection, disbursement and record keeping and adopt computer access and security practices.

During the audit process, examiners found that five transactions, totaling $11,640, made during the audit period were voided due to payment duplication and other errors.

Three duplicate checks were made to the Village attorney and one one to the Village accountant, according to the audit report. The final check was voided because “the payment was not a proper village charge,” the report read.

Auditors reviewed 35 claim voucher packets, totaling $198,760, for evidence of proper documentation and found that eight voucher packets lacked department head approval signatures.

The examination showed that signed documentation acknowledging receipt of service or goods were missing from 21 packets and 29 packets were without required purchase orders.

Required trustee approval forms were missing from 27 packets, the report read.

The audit was conducted through interviews with Village officials and a review of Village documents, manuals and records including cash receipts and disbursements, purchases and receipts.

The full audit report can be downloaded from the State Comptroller’s website at: osc.state.ny.us/localgov/audits/villages/2009/coxsackie.pdf - 2009-07-06 . Copies are also available at the Village office.

Coxsackie Village Mayor Mark Evans said in an e-mailed statement that he was not surprised by the audit results.

“It has been evident that the financial health of the village has been in poor shape for some time and the State Comptroller’s Office audit simply confirms this,” he said.

Evans, who served as a councilman for the Town of Coxsackie for four years before he defeated incumbent John Bull 453-211 in March, blamed previous administrations for the costly oversights.

He said he hired a budget officer to assist with the budget process this April and held public budget work sessions.

On April 29, Evans and his board adopted a budget with a 9.5-percent tax increase. At the time, he said the tax hike was necessary because critical issues and projects had not been addressed during the last few years.

Evans said an accounting firm regularly reviews financial records. The Village is changing cash management procedures, he said.

Evans said he was confident that with a lot of work the Village will be able to correct the problems identified by the auditors.