Audit Objective
Determine whether City of Salamanca (City) separation payments were properly authorized, adequately supported and accurately calculated.
Key Findings
Separation payments were not properly authorized, adequately supported or accurately calculated. This resulted in unsupported and possibly improper payments being made.
Of the 23 separation payments made between April 1, 2020 and October 31, 2022, to 18 employees, totaling approximately $306,000, we noted:
- Seven payments totaling approximately $13,400 did not have adequate support.
- Six payments totaling approximately $6,800 included leave balances that were not authorized to be paid at separation. This included $3,400 paid to one employee that did not leave City employment.
- One payment totaling approximately $45,000 was based on more than nine years’ worth of leave accrual records. Officials relied on the accrual review performed by the individual who received the payment. Officials did not independently review the accruals for accuracy, increasing the risk that an improper payment could have been made based on inaccurate leave accrual records.
These exceptions occurred because the City Common Council (Council) and Board of Public Utilities (BPU) Commissioners did not provide the required oversight of salary payments.
Key Recommendations
Review the contents of the City Charter (Charter) in its entirety, review payments made to former City employees for accuracy and legitimacy, and consult with the City attorney to seek recovery of these funds, as appropriate.
City officials agreed with our findings and indicated they would initiate corrective action.