Audit Objective 

Determine whether Town of Riverhead (Town) officials properly administered the Peconic Bay Community Preservation Fund (CPF) to ensure that all collections were properly supported, recorded and deposited and that disbursements were proper and supported.

Key Findings 

Town officials ensured disbursements were proper and supported. However, Town officials did not always follow the Town’s collections procedures and, as a result, did not always maintain complete collections records or deposit collections in a timely manner. Specifically, of the Town’s 27 CPF collections totaling $15.5 million: 

• Seven collections totaling $5.3 million were missing the date received at the Supervisor’s Office; therefore, we could not confirm whether Town officials deposited these collections in a timely manner.
• Nine CPF collections totaling $5.3 million were not deposited within 10 days, as required by Town Law Section 29.The collections were deposited an average of 18 days, and as much as 28 days, after they were recorded as received.

Key Recommendations 

• Ensure Town personnel who receive CPF collections are aware of, and follow, collections procedures.
• Maintain complete collection records, including the date CPF checks are received.
• Deposit CPF collections in a timely manner.

Town officials disagreed with certain aspects of our findings and recommendations, but indicated they have initiated corrective action.