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State
Comptroller’s auditors have uncovered a $14,523 shortfall in the
accounts of former Alexander Town Clerk Carrie Pike’s office. The
findings of the audit have been referred to the Genesee County District
Attorney’s Office and the Genesee County Sheriff’s Department for
further investigation.
In
an audit released Thursday by State Comptroller Alan Hevesi, auditors
said poor internal controls in the clerk’s office and lax oversight by
the town board may have caused the alleged theft, which included
property tax collections, transfer station fees and cash.
The Sheriff’s Department has already begun an investigation of the
irregularities identified in the audit.
“We
take a zero-tolerance approach to local officials who exploit their
positions and steal from the public,” Hevesi said. “I urge the District
Attorney and the Sheriff’s Office to fully pursue any wrongdoing. I
recommend that the town board take immediate action to recover taxpayer
dollars and take the necessary steps to guard against the misuse of
public money.”
Auditors reviewed the financial operations of the town clerk’s office
from September 1, 2002 until February 11, 2005. Carrie Pike served as
the elected town clerk during the audit period until she resigned in
February 2005.
Auditors found a range of financial irregularities during Pike’s tenure
as town clerk. For example, there were significant inconsistencies in
the clerk’s account of an alleged burglary of town funds. Also, there
were occasions when she made up for shortfalls in town accounts by using
her own personal money or funds collected from customers in subsequent
months.
Auditors found minimal segregation of duties and weak internal controls.
The state comptroller said the former clerk may have deliberately
weakened controls over the collection of transfer station fees. For
example, in October 2003, Pike eliminated duplicate receipts for
transfer station fees. Instead she provided a single receipt called a
“landfill money receipt.” This receipt was not numbered, nor was a copy
provided to the transfer station attendant. When auditors reviewed
landfill receipts between September 2003 and September 2004, no receipts
were available and an estimated $5,950 had been collected but never
recorded or deposited.
Auditors found that the town board failed to provide adequate oversight
of the financial operations in the clerk’s office. The board did not
require the clerk to make an annual accounting for monies received and
disbursed, nor did the town board audit the clerk’s financial records,
which is required by law.
Auditors recommended that the town board take immediate action to
determine the cause of the missing money and take steps to recover it.
As part of its oversight function, auditors recommended that the town
board perform a risk assessment of the operations of the Clerk’s office
and perform an annual audit of records. Auditors also suggested that the
new clerk develop internal control policies, segregate duties within the
office, properly record town money and provide monthly reports to the
town board.
In
a written response to the audit, the town supervisor and councilmen
indicated they had attempted to inspect the clerk’s books without
success and are considering changing the position from an elected one to
an appointed position. Currently, town officials are cooperating with
law enforcement officials and are working to implement the auditors’
recommendations. The full response is included in the audit.
Copy of the audit in PDF Format © 2005 North
Country Gazette |
