Audit Objective
Determine whether the Town of Poestenkill (Town) Town Board (Board) ensured credit card purchases were adequately supported, for legitimate purposes and approved before payment.
Key Findings
The Board did not ensure all credit card purchases were adequately supported, for legitimate purposes and approved before payment. As a result, the Town paid $1,322 for inappropriate personal purchases including, but not limited to, household and personal care items, video streaming services and clothes that were made by the former Administrative Assistant (Assistant) using Town resources.
Based on the findings, an investigation was commenced. The Assistant was arrested in March 2023 and pleaded guilty to a Class A misdemeanor for petit larceny in February 2024. She paid $2,640 in restitution, which included additional amounts uncovered during the investigation.
- Officials did not maintain supporting documentation for 142 credit card purchases totaling $12,314 (23 percent).
- The Town paid $1,873 for 21 purchases that were not for an appropriate Town purpose.
- The Board did not audit eight credit card payments totaling $13,563 (28 percent) before payment, as required.
Key Recommendations
- Establish a written credit card policy.
- Ensure purchases are properly supported.
- Audit and approve all claims before payment.
Town officials generally agreed with our recommendations and indicated they planned to initiate corrective action.