Audit Objective
Determine whether the Justices and Town of Marion (Town) Board provided adequate oversight of the Justice Court (Court) to ensure cash collections were properly deposited, recorded, reported and remitted.
Key Findings
The Justices and Board did not provide adequate oversight of Court financial activities. As a result, the former court clerk was able to misappropriate more than $59,000, or 38 percent of the fines, fees and surcharges collected between January 1, 2016 through May 31, 2021. In August 2023, the former court clerk pled guilty to grand larceny in the second degree, corrupting the government in the second degree, tampering with records in the first degree and official misconduct. In October 2023, the former court clerk was sentenced to serve six months in jail and pay more than $59,000 in restitution.
The Justices did not:
- Perform a proper review of reports submitted to New York State agencies to ensure that all cases, including any cash collected (e.g., fines and fees), were properly reported and remitted.
- Perform an adequate review of bank reconciliations or accountabilities (compare current assets to current liabilities) to ensure that all collections were accurately accounted for and to promptly identify discrepancies. The Justices also did not review deleted transactions reports.
The Board did not:
- Perform a proper annual audit.
Key Recommendations
- Perform a thorough review of the reports submitted to New York State agencies.
- Perform monthly bank reconciliations and accountabilities, and promptly review and resolve any differences.
Town officials generally agreed with our findings and indicated they plan to initiate corrective action.