State audit says supervisor failed to maintain accurate records

AMSTERDAM – Supervisor Thomas DiMezza failed to maintain timely or accurate accounting records in the town, according to a state comptroller’s audit.

The audit – which reviewed the supervisor’s records from Jan. 1, 2010, to July 31, 2012 – showed the town’s accounting records did not support the annual update documents filed with the comptroller’s office in 2010 and 2011.

In addition, the audit says, the Town Board did not receive all the financial information it needs to monitor the town’s financial operations.

Auditors found discrepancies between bank reconciliations and account balances documented in the town’s accounting records, the audit showed.

“Timely, sufficient and accurate accounting records are essential for the preparation of appropriate financial reports that help the board to monitor and control financial operations and assess the town’s financial condition,” the audit stated. “The lack of timely and accurate financial information led to errors and irregularities that went undetected and uncorrected, while also hampering the board’s ability to make sound financial decisions.”

The audit made the following recommendations:

  • The supervisor should ensure the town’s accounting records are completed and accurate.
  • The board should ensure complete and accurate monthly bank reconciliations are performed for each fund.
  • The supervisor should file accurate annual update documents to reflect the amounts recorded in the accounting records.
  • The supervisor should perform an analysis to determine the correct cash and other balance sheet accounts for all funds and give the results to the board.
  • ?The supervisor should give the board a monthly supervisor’s report showing all receipts, disbursements and cash balances.

Town officials agreed with the recommendations and said they planned to take corrective action, according to the audit.

“The town, through the New York State Comptroller’s Office, the software vending company and possibly an outside auditing firm, will ensure to make the necessary changes,” stated a March 27 letter from DiMezza to the comptroller’s office.

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