Audit Objective 

Determine whether Village of Horseheads (Village) officials properly recorded and deposited collections timely and intact.

Key Findings 

Village officials did not properly record or deposit all collections in a timely manner. Officials did not reconcile departmental records with Village records, utilize records that could verify deposits were made intact, complete timely bank reconciliations, or perform annual audits. We determined that: 

• Code Enforcement Department (Code Enforcement) officers did not accurately record collections totaling $1,804.
• Cemetery Department (Cemetery) collections and Code Enforcement permit collections totaling $71,992 were deposited an average of 15 and 21 days late, respectively.
• Code Enforcement cash collections totaling $150 were not deposited until we identified the discrepancy, or seven to 11 months after collection.
• The Board of Trustees (Board) did not comply with New York State Village Law which required the Board to annually audit the Clerk-Treasurer’s records and reports. The last audit was conducted in 2018.

The Comptroller’s Office commenced a separate investigation into the possible misappropriation of Village funds. In August 2023, the Assistant Clerk was arrested on the charges of grand larceny in the third degree and corrupting the government. In March 2024, the Assistant Clerk pleaded guilty to attempted petit larceny and paid full restitution.

Key Recommendations 

• Reconcile departmental records to the Village’s primary accounting records.
• Record and deposit all collections timely and reconcile Village bank accounts monthly.
• Establish receipt records that document the date, purpose, form and amount of money collected.
• Annually audit the Clerk-Treasurer’s annual financial report and supporting records.

Village officials generally agreed with our findings and indicated they have initiated, or plan to initiate, corrective action.