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 June 30, 2024.
Background
Pursuant to a court order, certain assets may be provided to the court and then delivered to the County Treasurer (Treasurer) 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 Treasurer, 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
- There was no reconciliation performed between the Treasurer’s, County Clerk’s and Surrogate’s Court’s records.
- Three cases totaling $175,940 were excluded from the annual report.
- The court and trust register did not include two court and trust actions identified in the Treasurer’s records.
Key Recommendations
- The Treasurer should perform an annual reconciliation of court and trust funds with the County Clerk and Surrogate’s Court and ensure annual reports are accurate and all cases are appropriately reported.
- The County Clerk should ensure a complete court and trust register is maintained as required by law.
1 Security interest in property filed to ensure payment for contracted services rendered on the property
2 When the whereabouts of any person entitled to payment from the estate is unknown