State audits found Groton and Waterloo school officials failed to properly manage electronic building-access accounts and devices, leaving active credentials that were no longer needed. The findings were part of a broader set of municipal and school audits released by state Comptroller Thomas DiNapoli.
Auditors said the unused key fobs in the Groton Central School District and badges in the Waterloo Central School District created a potential risk of unauthorized entry. Both findings raised concerns about the safety of students, teachers, staff and visitors.
Finger Lakes audits focus on access and records
The Groton district covers portions of Cayuga, Cortland and Tompkins counties. The Waterloo district is in Seneca County.
The comptroller's release did not identify an incident in which an unused credential was used to enter either district. The audits instead focused on the risk created when accounts remain active after access is no longer needed.
A separate audit of the town of Rose in Wayne County found supervisors did not maintain complete, accurate and current accounting records and reports. Although bookkeeping work had been assigned to the clerk to the supervisor, auditors said the supervisors did not provide adequate oversight.
The statewide batch also included financial findings in nearby communities. In the Fulton City School District in Oswego County, auditors said repeated operating deficits reduced surplus fund balance to $607,034 at the end of 2024-25, equal to 0.6% of the next year's budget. The district also issued $8 million in revenue anticipation notes for year-end cash flow.
Other reviews cite financial oversight failures
The North Brookfield Volunteer Fire Department in Madison County lost $45,758 of principal after investing $77,200 with a local tax preparer and insurance agent who later filed for bankruptcy and was convicted in a Ponzi scheme. The department recovered $6,442 through bankruptcy proceedings, according to the audit summary.
Auditors said the department had not adopted a written investment policy or procedures designed to protect public funds. The promissory notes had promised an 8% annual return.
The release also cited weaknesses in claims review at fire districts in Rensselaer and Erie counties, financial management issues in Olean and South Glens Falls and inadequate board oversight at fire districts in Delaware and Otsego counties.
At Sand Lake Fire District No. 2, auditors reviewed 62 claims totaling $280,832 and found none had been audited and approved by the full board as required, although the expenses were supported and valid. At Snyder Fire District, 115 of 137 reviewed claims lacked enough documentation for a proper audit, and the district incurred about $9,700 in unnecessary costs.
In Livingston County, auditors said the town of Portage supervisor did not adequately oversee a bookkeeping firm assigned to maintain records, prepare disbursements and produce financial reports. A Saratoga County audit found Galway employees' time and leave records were generally supported, but the supervisor did not adequately ensure pay and benefits matched board resolutions and a union agreement.
DiNapoli's office publishes full audit reports with recommendations and responses from the local governments and school districts reviewed.
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