A state audit has uncovered significant weaknesses in the Village of Skaneateles’ claims auditing process, revealing that many payments were made without proper approval or adequate documentation. The audit, conducted by the New York State Comptroller’s Office, reviewed 348 claims totaling roughly $2 million and found that 206 of those claims, amounting to $1.3 million, had at least one deficiency.
The audit report highlighted a lack of oversight by the Village Board, which is responsible for auditing and approving claims before payment. Among the findings, it was noted that 93 claims, totaling approximately $618,000, were paid without Board review. Additionally, several claims were processed without competitive bidding as required by New York State General Municipal Law, raising concerns about compliance with procurement policies.
The Village’s Treasurer, who has held the position since July 2023, and the office clerk are responsible for preparing and processing claims. However, the audit revealed multiple instances where procedures were not followed, increasing the risk of improper or inaccurate payments.
Key findings expose auditing lapses
The audit, covering the period from June 1, 2022, to March 28, 2024, outlined several critical issues:
- Lack of Board review: Out of the $2 million in claims examined, 93 claims—totaling $618,000—were not audited by the Village Board before payment, a key responsibility of the Board.
- Non-competitive procurement: Seven claims, valued at approximately $356,000, were not competitively procured, as mandated by state law and the Village’s own procurement policies.
- Delayed approvals: Department heads approved 36 claims worth $171,000 only after payments were already issued, with an additional five claims ($6,800) receiving no department head approval at all.
- Inadequate documentation: 23 claims, amounting to $112,000, lacked sufficient supporting materials, such as original, itemized invoices and receipts.
These deficiencies suggest a breakdown in the Village’s financial control system, potentially putting taxpayer dollars at risk. According to the report, when claims are processed without appropriate scrutiny or documentation, the chances of improper or inflated payments increase, and goods or services may not always be secured in the taxpayers’ best interest.
Recommendations for improvement
The audit report issued five recommendations aimed at tightening the Village’s claims auditing practices. These include ensuring that all claims are properly audited before payment, that procurement rules are followed, and that adequate supporting documentation is provided for every claim.
Village officials have generally agreed with the audit’s findings and recommendations. They have already begun or plan to initiate corrective actions to address the issues raised, according to the report.
The role of Village leadership
The Village of Skaneateles, located in Onondaga County, is governed by a five-member Board consisting of the Mayor and four Trustees. The Board is tasked with overseeing the Village’s operations, which includes auditing and approving claims for payment. The Mayor, as the Village’s chief executive officer, is responsible for managing daily operations under the Board’s direction.
The Village’s Treasurer handles financial activities, including paying claims. Since July 2023, the Treasurer has worked alongside an office clerk who enters claims into the accounting system, compiles claims packages, and presents them to the Board for approval. The audit highlighted several procedural shortcomings that fall within these roles.
Moving forward
While the Village has acknowledged the audit’s findings, the report underscores the importance of adhering to established financial controls. Ensuring that all claims are properly audited and supported will not only protect public funds but also maintain the integrity of the Village’s operations.
With the audit’s recommendations in place, Skaneateles officials now face the challenge of implementing the necessary changes to prevent similar issues from arising in the future.
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