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Report Highlights Town of Hamburg Audit Objectives Determine whether the Town of Hamburg’s Background (Town’s) Finance Office credit card purchases were The Town is located in Erie County and supported and for proper Town purposes. is governed by the elected five-member Determine whether the Town’s Finance Office Board including the Town Supervisor payroll was accurate and supported. (Supervisor). The Board is responsible for the general oversight of the Town’s operations and finances. Key Findings The Town Board (Board) and Town officials did not The Supervisor is responsible for the ensure that credit card purchases were supported proper administration of Town affairs. The and for proper Town purposes. As a result, the Director of Finance (Director), under the former Director of Finance (former Director) direction of the Supervisor, is responsible made improper credit card purchases totaling for the Town’s day-to-day financial approximately $2,000 and approved her own credit activities, maintaining accounting records card purchases. The former Director was arrested and providing monthly financial reports to in September 2022 for charges relating to her use the Board. The Town’s current Supervisor of the Town’s credit card. She pleaded guilty to assumed office in January 2022 and disorderly conduct in December 2022. the current Director was appointed in Additionally, the Board and Town officials did not January 2022. ensure Finance Office payroll was accurate and The Town’s Finance Office includes supported. The Town made improper, questionable the accounting, payroll, personnel and and/or unsupported payroll payments totaling more than $19,000 to the former Director while one of information technology (IT) departments. her direct reports received unsupported out-of-title The Personnel Department is responsible payroll payments totaling approximately $1,400. for entering and processing payroll. Additionally, the Directors of Personnel approved Quick Facts their own overtime pay totaling more than $5,000. Finance Office Payroll $400,000 Without appropriate controls, department heads Reviewed could continue to make improper purchases and Finance Office Credit Cards receive inappropriate or unnecessary payroll payments. Number of Credit Cards 4 Total Transactions 1,283 Key Recommendations Credit Card Purchases $395,421 l Properly audit claims and ensure credit card purchases are supported by itemized invoices and receipts to ensure they are for a proper Audit Period Town purpose. January 1, 2018 – December 15, 2022 l Properly segregate payroll duties and prohibit We extended our audit period back officials and employees from approving their to January 1, 2018 to review selected own time sheets and overtime. payroll payments. Town officials agreed with our findings and indicated that they plan to initiate corrective action. Of f ic e of t he New York State Comptroller 1