SALAMANCA — Collections made by the City of Salamanca were not always accurately recorded and deposited in a timely and accurate manner, according to an audit released March 20 by State Comptroller Thomas DiNapoli’s office.
DiNapoli said an audit for the City of Salamanca showed the city comptroller’s collections were not always accurately recorded, and because adequate collection records were not always maintained, auditors could not determine whether deposits were generally made in a timely manner.
Auditors reviewed 29 deposits totaling nearly $2 million which consisted of 1,835 entries made during the audit period April 1, 2020, to May 22, 2023. The data concluded that 1,759 entries lacked a duplicate press-numbered receipt, which precluded auditors from determining whether deposits were made in a timely manner.
Another 34 entries totaling approximately $50,000 did not have the correct form of payment — either cash or check — listed in the collection records, and 26 entries totaling approximately $18,000 did not have either the correct check number included on the collection records or no check number listed at all.
Current Comptroller Bob Earley, who was the senior accountant in the comptroller’s office during the audit period, told the state that he had not received any guidance from either former Comptroller Kathi Sarver or the Common Council that receipts needed to be issued or what information needed to be entered into the daily collection records, according to the audit report. The report claims Earley told the state that he and other staff members only entered what information they felt was needed into the daily collection records. As a result, critical information such as check numbers and payees was not always recorded.
While auditors found no collections were lost, misused or misappropriated, because complete and reliable collections were not always maintained, it was determined there was an increased risk of city collections being lost, misused or misappropriated.
According to council members auditors spoke with, the council did not create and adopt collection policies or procedures for the comptroller’s office detailing what information they expected to be included, such as payees, check numbers and the date of collection, the report stated.
The council members had not familiarized themselves with the specific contents of the city charter and did not know that they could prescribe the format and content of the comptroller’s daily and monthly financial reports until the state audit. Council members told auditors that they relied on the former comptroller to handle all collection activity for her office according to the requirements listed in the charter.
However, the charter did not include specific information that should be included in daily collection records or when deposits should be made, the state reported. As a result of the council not adopting policies and procedures that communicated its expectations for the recording and depositing of collections, and of office staff determining what information should be entered into daily collection records, collection records maintained were unreliable.
DiNapoli’s office recommended the council should adhere to charter provisions and provide oversight by prescribing the format and content of financial reports as well as establish and adopt policies and procedures for recording and depositing collections in the comptroller’s office.
Additionally, it was recommended the comptroller should ensure that duplicate press-numbered receipts are issued for each collection when no other form of receipt is available as well as maintain accurate daily collection records for each transaction that include: how much was received, who received it, from whom it was received, when it was received, what it was received for and in what form (cash, check, electronic payment) it was received.
In a response to DiNapoli’s office dated Feb. 5, Mayor Sandra Magiera said the city is in agreement with the findings and “will provide a response to how the City of Salamanca plans to correct findings in our corrective action plan, which will follow after the final report is issued.”
