Purpose of Review
Our objective was to determine whether County officials established appropriate controls to safeguard and account for court and trust funds for the period January 1, 2022 through December 31, 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. These actions are recorded in the County Clerk’s office when payments are deposited as required by court order. Additionally, in certain circumstances, 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 Treasurer delayed turning over $44,940 of abandoned property to the State Comptroller for three years.
- The County Clerk’s register did not include one court and trust action identified in the Treasurer’s records.
- The Surrogate’s Court register did not include an action ordering the deposit of $6,867 with the Treasurer during 2017.
Key Recommendations
- The Treasurer should perform an annual reconciliation of court and trust funds with the County Clerk’s and Surrogate’s Court’s records.
- The Treasurer should ensure that annual reports to the State Comptroller are accurate and all cases are appropriately reported.
- The Treasurer should ensure that all money deemed abandoned property is paid to the State Comptroller in a timely manner.