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 1, 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 Finding
- The records maintained by the Treasurer, County Clerk and Surrogate’s Court were generally up to date and complete. However, we identified one action for $2,382.66 that was not properly turned over to the State Comptroller.
Key Recommendation
- The Treasurer should ensure that all money deemed abandoned property is paid to the State Comptroller in a timely manner.
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.