Comptroller audit addresses lax accounting in Chenango County town

LINCOLN, N.Y. — Recent audits by New York State Comptroller Thomas DiNapoli’s office found some accounting shortcomings in the town of Lincoln in Madison County, where a former town clerk was arrested for stealing from the town, according to the audit reports.

The first audit, which covered Dec. 1, 2017, through June 1, 2022, found that the former town clerk failed to properly account for, deposit, report, or remit collections.

“When receipts are not accurately and promptly recorded or deposited, officials do not have assurance that all collections are accounted for, and money could be lost or misappropriated,” the comptroller’s report read. “For example, as of April 13, 2022, the former clerk could not account for cash totaling $3,869.

The audit found the clerk also failed to deposit $4,038 in cash collections recorded from Jan. 1, 2018, through April 13, 2022. The clerk also did not maintain complete records for cash collected, resulting in town officials finding $622 in cash in her office with no supporting records.

The clerk also failed to record 44 checks totaling $4,320 in the accounting system and improperly voided other receipts totaling $769.

“These unrecorded receipts and voids enabled the former clerk to conceal cash collections that were recorded but not deposited,” the report read. “The town board did not perform an annual audit of the former clerk’s records, as required.”

In July 2023, the former clerk, Amy Becker, was arrested on charges of petit larceny for stealing nearly $4,000 from the town. She subsequently pled guilty, paid restitution of $3,869, and received a one-year conditional discharge.

DiNapoli’s office recommended that going forward, the Town of Lincoln perform an annual audit of the clerk’s records and that the clerk promptly deposit and record collections.

“To ensure the town’s continued financial integrity and accountability, it is imperative that we uphold best practices moving forward (since 2022),” Town of Lincoln Supervisor Melissa During said in a written response to DiNapoli’s office. “By adhering to established guidelines and implementing more robust internal controls, we can safeguard taxpayer funds, mitigate risks, and maintain transparency in our operations.”

The second audit by DiNapoli’s office focused on making sure the Town of Lincoln board and supervisor ensured that disbursements were supported and approved.

The audit, which covered Jan. 1, 2020, through Dec. 31, 2021, found that the board and former supervisor did not ensure disbursements were adequately supported and properly improved. Three payments totaling $2,605 were not audited and approved by the board. Claims totaling $109,158 were improperly paid prior to the board audit, and claims totaling $533,518 were improperly audited and approved by the former supervisor rather than the board.

Additionally, 13 claims totaling $23,116 did not contain sufficient supporting documentation. Former bookkeepers did not maintain time records to support the hours for which they were paid, and one bookkeeper received $1.751 in additional pay with no evidence of approval.

DiNapoli’s office recommended the Town of Lincoln consult with legal counsel about the unsupported claim payments to the former supervisor and bookkeeper and seek recovery of those funds. Going forward, the town board should audit and approve claims prior to payment when required and ensure all claims include adequate support before approving them.

The Town of Lincoln has contracted with an outside vendor for bookkeeping and payroll services since February 2022.

In a letter to DiNapoli’s office, During, who took office as supervisor in 2022, noted she only pays claims that have been audited and approved by the board and all hourly employees are maintaining detailed time records.