The Board and District officials did not properly manage fund balance.

The Office of the State Comptroller, as Fiscal Agent for the City of Yonkers (City), determined that the City's adopted budget for fiscal year 2020-21 and the related justification documents are in compliance with the requirements of the Fiscal Agent Act. However, we wish to comment on the following issues which impact the City's financial condition in the current and future years.

The Board did not perform an adequate annual audit of, or retain an independent public accountant to audit, the records of the Clerk, golf course and toboggan chute.

The District's procurement policy could be improved and the Board of Fire Commissioners should ensure compliance with the policy.

District officials could improve procedures related to purchasing, fixed assets and the annual update document (AUD) filing.

The Board could improve its oversight of the Company's financial activities and safeguarding of Company resources.

Village officials did not establish adequate time and attendance (T&A) controls.

School officials could improve controls over information technology (IT).

The Board and Town officials could improve the Town's procurement policy and purchasing procedures.

We commend the Superintendent and Board for the actions they have taken to improve the accuracy of budget projections in the 2020-21 budget and restore the District's overall financial condition, especially in light of the challenges caused by unexpected revenue reductions due to the economic fallout resulting from the COVID-19 pandemic. We found revenue projections to be substantially accurate. However, appropriations for charter school tuition are underbudgeted by approximately $1.5 million and salary and substitute costs will have to be closely monitored. Additionally, the budget remains structurally imbalanced because District officials are relying on City Council to approve a waiver to the City charter for the use of $10 million for operation expenditures rather than capital purposes. Therefore, absent recurring additional revenue, appropriation reductions will be necessary for future budgets to be structurally balanced.

The Board and Town officials did not ensure that the Town's information technology (IT) systems were adequately secured and protected against unauthorized use, access and loss.

The Board did not develop and manage a comprehensive investment program to ensure interest earnings were maximized within acceptable risk levels.

Town officials did not adequately safeguard information technology (IT) resources.

The Board and Town officials did not adequately safeguard and account for Highway Department (Department) assets.

The Board did not ensure that officials and employees procured goods and services in accordance with the procurement policy.

The Board could improve its budgeting and management of fund balance and reserves.

The Board did not annually audit the records of all officers and did not properly audit claims.

The Board did not develop a disaster recovery plan and Town officials did not monitor compliance with the acceptable use policy and manage system access.

The Board did not effectively monitor expenditures and fund balance and did not ensure that reserve transactions were transparent to the public.

The Board maintained a lax control environment and did not carry out its responsibility to oversee financial operations and safeguard District assets.