A state audit says the Town of Catharine failed to meet basic financial transparency requirements, leaving residents without timely access to key information about how town money was tracked, reviewed and reported.
The report from state Comptroller Thomas DiNapoli’s office found that the Schuyler County town board did not conduct a required annual audit of the town supervisor’s 2024 financial records and that the town failed to file its 2024 annual financial report on time.
Auditors said the town’s 2023 annual financial report was filed 523 days late, while the 2024 report had not been filed as of Nov. 28, 2025. The town budgeted $887,849 in 2024 between its general and highway funds.
The comptroller’s office said the failures reduced public transparency and limited the board’s ability to monitor the town’s finances, fund balance and overall fiscal condition.
Auditors also identified problems with cash receipts, claims review and monthly financial reporting. The report said the supervisor did not document when certain payments were received or enter receipts into accounting records in a timely manner, increasing the risk that town funds could be lost, stolen or misappropriated.
The audit also found the board did not properly document its review of claims before payments were made. In a review of 44 December 2024 disbursements totaling $65,667, auditors found three insurance-related claims totaling $1,770 that lacked invoices or supporting documentation.
The comptroller’s office said the board was receiving monthly budget status reports and cash balance listings, but not trial balances, balance sheets or bank reconciliations. Without that information, auditors said board members could not effectively track the town’s financial position throughout the year.
Town officials told auditors they knew annual financial reports were required but said the 2024 filing was delayed because of problems with prior-year accounting records. The town’s bookkeeper reported finding issues that included missing bank reconciliations, unrecorded revenues and expenses, incorrect journal entries and improperly voided checks dating back to earlier years.
The audit issued 10 recommendations, including that the board conduct required annual audits, document claims review, require complete monthly financial reports and ensure annual financial reports are filed and made available to the public.
In a written response, town officials generally agreed with the findings and said corrective actions are underway. Officials said board members will now document claims reviews, monthly balance sheets and bank reconciliations will be provided to the board, and the town is working with the comptroller’s office to complete the overdue 2024 annual financial report.
The comptroller’s office said the town board must submit a corrective action plan within 90 days.
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