I would like to follow up on the Village Board's handling of budgets and other financial information. Taxpayers should be aware of the amounts the Village Board budgets for “consulting fees” for CPA services to conduct the legally required annual audit of the Village’s financial records.
Previously, the last completed professional audit of the Village’s financial records took place in 2002, with a report issued by the CPA firm Fox, Porretti on May 31, 2002. When Diana Smith was campaigning for the mayor’s seat in 2004 she promised she would ensure there would be professional review of the Village’s finances on an annual basis and that she would ensure that the true picture of village finances would become clear under her administration.
From what taxpayers can discern from each budget approved since 2004, taxes were collected through these budgets to hire a CPA to audit our books. However, there were NO annual audits of the books until late 2006! So, taxpayers were being taxed for at least two years for services they were not receiving.
The necessity to conduct annual audits (which are to be performed either by the Board of Trustees themselves, or by a professional accountant) has been in question.
In August 2006, a Freedom of Information request was submitted for a copy of the Board's annual audits of the Treasurer's records for 2004-05 and 2005-06 budget years.
The Village's response was: "There was no audit performed by the Village Board or a CPA firm for the years 2004-05 and 2005-06. It is my understanding, upon review of General Municipal Law, Finance Law and opinions of the Office of the State Comptroller, that there is no mandate that external or internal audits be performed, unless the local government receives in excess of $500,000 in federal funding..."
In response, the person who requested the FOIL information wrote back:
"I have enclosed for your review...information that reveals that the Village Board indeed must perform an annual audit of the Treasurer’s reports and supporting documentation. This requirement is stated in NYS Village Law §4-408(e), under the Treasurer’s powers and duties..."
On page 60 from the Village’s 2005 Annual Update Document submitted to the NYS Comptroller's Office, regarding whether the Village had performed an independent audit of the financial statements, the Treasurer indicated “no” and the follow-up answer indicated that the Village planned to conduct this audit. Detail pages from the 2003-04, 2004-05, 2005-06 and 2006-07 Village Budgets each included funds for the purpose of engaging financial consultants or a CPA for audit services.
Clearly, at times, the Village Board recognized its obligation to perform an annual audit of the Treasurer’s records by the fact that tax dollars were collected for that purpose. Unfortunately, the Board of Trustees subsequently failed to meet their obligation to audit for several years and taxed residents for a service that was not being provided.
Subsequent to the response to the FOIL request of August 2006, the Village Board of Trustees finally announced that they were engaging the services of Ray Wager, CPA to conduct an audit of the Village finances.
However, to my knowledge and to this date, the audit is either not yet completed, or it was completed but not discussed at any of the public meetings I have attended.
Previously, the last completed professional audit of the Village’s financial records took place in 2002, with a report issued by the CPA firm Fox, Porretti on May 31, 2002. When Diana Smith was campaigning for the mayor’s seat in 2004 she promised she would ensure there would be professional review of the Village’s finances on an annual basis and that she would ensure that the true picture of village finances would become clear under her administration.
From what taxpayers can discern from each budget approved since 2004, taxes were collected through these budgets to hire a CPA to audit our books. However, there were NO annual audits of the books until late 2006! So, taxpayers were being taxed for at least two years for services they were not receiving.
The necessity to conduct annual audits (which are to be performed either by the Board of Trustees themselves, or by a professional accountant) has been in question.
In August 2006, a Freedom of Information request was submitted for a copy of the Board's annual audits of the Treasurer's records for 2004-05 and 2005-06 budget years.
The Village's response was: "There was no audit performed by the Village Board or a CPA firm for the years 2004-05 and 2005-06. It is my understanding, upon review of General Municipal Law, Finance Law and opinions of the Office of the State Comptroller, that there is no mandate that external or internal audits be performed, unless the local government receives in excess of $500,000 in federal funding..."
In response, the person who requested the FOIL information wrote back:
"I have enclosed for your review...information that reveals that the Village Board indeed must perform an annual audit of the Treasurer’s reports and supporting documentation. This requirement is stated in NYS Village Law §4-408(e), under the Treasurer’s powers and duties..."
On page 60 from the Village’s 2005 Annual Update Document submitted to the NYS Comptroller's Office, regarding whether the Village had performed an independent audit of the financial statements, the Treasurer indicated “no” and the follow-up answer indicated that the Village planned to conduct this audit. Detail pages from the 2003-04, 2004-05, 2005-06 and 2006-07 Village Budgets each included funds for the purpose of engaging financial consultants or a CPA for audit services.
Clearly, at times, the Village Board recognized its obligation to perform an annual audit of the Treasurer’s records by the fact that tax dollars were collected for that purpose. Unfortunately, the Board of Trustees subsequently failed to meet their obligation to audit for several years and taxed residents for a service that was not being provided.
Subsequent to the response to the FOIL request of August 2006, the Village Board of Trustees finally announced that they were engaging the services of Ray Wager, CPA to conduct an audit of the Village finances.
However, to my knowledge and to this date, the audit is either not yet completed, or it was completed but not discussed at any of the public meetings I have attended.
