RAVENA — The Village Board has little control over finances, allowing operating deficits in the water and sewer funds and overspending in 43 accounts by $373,271 last year, an audit by the state comptroller's office found.
The audit revealed scant oversight by the board and said the village treasurer has almost exclusive control over finances.
It found that the board is not aware of purchases, does not monitor the actual cost of operations versus the budgeted cost, does not approve budget transfers, did not audit the treasurer's records or the justice court and filed annual financial reports late.
The village sewer fund is at a $406,171 operating deficit and the water fund is at a $54,140 deficit, the audit said.
In the 2010-11 fiscal year, the audit found 43 accounts in the water, sewer and general funds were overspent by a total of $373,271, resulting in $215,554 worth of budget transfers.
None of the transfers were approved by the board, the audit said.
"Without effective controls over budgetary modifications, expenditures may exceed available appropriations, placing the village at risk of not having moneys available when needed and incurring operating deficits that could negatively impact the village's financial condition," the audit said.
The total village budget was $3.1 million for 2010-11, the period audited.
The lack of oversight also resulted in four extra payments totaling $3,001 to a diesel fuel vendor, although when the error was found, the vendor returned the extra cash.
The audit called the village's purchasing policy outdated, said the policy is not being followed and the board is not monitoring purchases.
Two out of three department heads said they were unaware the village had a purchasing policy, and in reviewing claims, a substantial portion of them did not have proper documentation attached.
The approving signatures of at least a majority of the board were not found for $21,996 in purchases.
"Without proper monitoring of the village's procurement policy, the board cannot be assured that the village is acquiring goods at the lowest price, which could result in unnecessary costs to taxpayers," the audit said.
Other irregularities found by the audit include annual financial reports due on Aug. 1 each year but filed in December 2010 and November 2011.
"The treasurer stated that the 2010-11 (annual financial report) was filed late because the village's accounting firm was too busy to complete it by the deadline," the audit said.
The audit also said the treasurer's records and the justice court's records were not audited by the board in 2010-11.
"The mayor stated that the board was not aware that audits of the treasurer's and the justice court's records were required to be completed," the audit said.
In addition, the audit said the board does not request or receive regular financial reports at its meetings, and board members don't generally review financial reports available in the treasurer's office.
The comptroller's office asked the village to create a plan to correct the irregularities within 90 days.
Mayor John Bruno did not return a call for comment, but a letter from him in the audit said, "the village accepts the stated findings and recommendations of the OSC draft. We take these findings very seriously."
The letter said the board will review the findings and develop a plan to address each of the recommendations.
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