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 November 21, 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 Treasurer 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
- The County Clerk’s register did not include an action ordering the County to deposit $2,000 with the Treasurer during 2022.
- The Surrogate’s Court register did not include an action ordering the executrix to deposit $5,000 with the Treasurer during 2022.
Key Recommendation
- The County Clerk and Surrogate’s Chief Court Clerk should ensure that complete court and trust registers are maintained.
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