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Purpose of Review

The purpose of our review was to determine whether County officials have established appropriate controls to safeguard and account for court and trust funds for the period January 1, 2021 through May 31, 2024.

Background

Pursuant to a court order, certain assets may be provided to the court and then delivered to the County Commissioner of Finance (Commissioner) for safekeeping. Payments made pursuant to court orders commonly involve surplus money from foreclosures and contract disputes resulting in a mechanic’s lien.¹ These actions are recorded in the County Clerk’s office when payments are deposited as required by court order. Additionally, in certain circumstances,² funds from estates are entrusted to the Commissioner for safekeeping by order of the Surrogate’s Court. Together, the Commissioner, County Clerk and Surrogate’s Court must develop sound procedures and processes which, when implemented properly and consistently, provide a system of internal controls to account for and safeguard these funds.

Key Findings

• The Commissioner or her confidential secretary did not perform bank reconciliations, and no reconciliation was performed between the Commissioner’s, County Clerk’s and Surrogate’s Court’s records.
• Funds of $100 improperly remained in the Commissioner’s custody that should have been turned over to the State Comptroller as abandoned property.

Key Recommendations

1. The Commissioner should ensure periodic bank reconciliations and annual reconciliation of court and trust funds with the County Clerk and Surrogate’s Court are performed, that all money deemed abandoned property is paid to the State Comptroller and Court-ordered money is reconciled monthly.  
2. The County Clerk should maintain a complete and up-to-date court and trust register as required by law.