Audit Objectives 

Determine whether the Town of Hamburg’s (Town’s) Finance Office credit card purchases were supported and for proper Town purposes. 

Determine whether the Town’s Finance Office payroll was accurate and supported. 

Key Findings 

The Town Board (Board) and Town officials did not ensure that credit card purchases were supported and for proper Town purposes. As a result, the former Director of Finance (former Director) made improper credit card purchases totaling approximately $2,000 and approved her own credit card purchases. The former Director was arrested in September 2022 for charges relating to her use of the Town’s credit card. She pleaded guilty to disorderly conduct in December 2022. 

Additionally, the Board and Town officials did not ensure Finance Office payroll was accurate and supported. The Town made improper, questionable and/or unsupported payroll payments totaling more than $19,000 to the former Director while one of her direct reports received unsupported out-of-title payroll payments totaling approximately $1,400. Additionally, the Directors of Personnel approved their own overtime pay totaling more than $5,000. 

Without appropriate controls, department heads could continue to make improper purchases and receive inappropriate or unnecessary payroll payments. 

Key Recommendations 

• Properly audit claims and ensure credit card purchases are supported by itemized invoices and receipts to ensure they are for a proper Town purpose. 
• Properly segregate payroll duties and prohibit officials and employees from approving their own time sheets and overtime. 

Town officials agreed with our findings and indicated that they plan to initiate corrective action.