Audit Objective
Determine whether the Town of Vestal (Town) former police chief’s (former chief) separation agreement and related “severance” payments were supported and accurately paid.
Key Findings
We determined that Town officials accurately paid severance payments totaling $229,251 to the former chief pursuant to a separation agreement the Town entered with the former chief. Town officials told us the Town entered into the separation agreement, which included severance payments, due to concerns of potential litigation against the Town.
The severance payments included $215,868 more than the amount the former chief was owed for unused leave accruals upon separating from service absent a separation agreement. However, neither the Town Board (Board) nor other Town officials were able to provide any written details, such as written evidence of concerns of potential litigation or a cost-benefit analysis, surrounding the decision to provide a separation agreement which included a severance payment.
Key Recommendations
To the extent possible, maintain documentation to help support and justify the decision to include a severance payment within a separation agreement, which in turn helps promote transparency.
Town officials agreed with our findings and indicated they would initiate corrective action.