Southtowns Record

Town of Hamburg - Finance Office (2023M-109)

Government
Town of Hamburg
Posted by publisher
Dec 8, 2023
Kind
State audit
Topics
Audits and oversight

Publisher's summary

The Town Board (Board) and Town officials did not ensure that credit card purchases were supported and for proper Town purposes. The former Director of Finance (former Director) was arrested in September 2022 for charges relating to her use of the Town's credit card. She pleaded guilty to disorderly conduct in December 2022. Additionally, the Board and Town officials did not ensure Finance Office payroll was accurate and supported.

Original document

Text · page 4 of 16

Credit Card Purchases
The former Director, appointed in January 2017 and terminated on September
22, 2021, was arrested in September 2022 and charged with one count of official  Credit card
misconduct, one count of criminal possession of stolen property in the fifth degree
and one count of petit larceny relating to her use of the Town’s credit card. She  purchases
pleaded guilty to disorderly conduct in December 2022.  should be
The Finance Office issued a credit card to the former Director, the IT Director, the  supported
Director of Personnel and the Assistant Accountant.
  by adequate
What Are Supported and Proper Credit Card Purchases?  documentation
Credit card purchases should be supported by adequate documentation  including
including itemized invoices, or receipts detailing the goods or services provided.
There should be sufficient information to determine that the purchases were for
  itemized
proper town purposes. To accomplish this, a town board (board) must provide  invoices,
appropriate oversight and monitoring, which includes auditing and approving
payment for credit card charges and establishing written policies and procedures  or receipts
to help ensure that credit card transactions are authorized prior to being incurred  detailing
and adequately supported. Such policies and procedures should include prior
approval for transactions to ensure that transactions are necessary town  the goods
expenditures.  and service
Department heads should review all credit card purchases made by their  provided.
department’s personnel by reconciling statements with itemized receipts, invoices
and purchase orders. If these transactions are made by a department head,
this review and approval should be provided by the town supervisor. In addition,
claims should be approved and paid timely to avoid unnecessary costs, such as
late fees and interest penalty charges. Ultimately, the board is responsible for
auditing and approving claims including claims for credit card charges.

Credit Card Purchases Were Not Always Supported or for Proper
Town Expenditures
We reviewed 121 credit card statements for four Finance Office employees
that included 1,283 transactions totaling $395,421. Based on our review, 164
transactions totaling $79,571 were not supported with appropriate documentation,
such as invoices or itemized receipts, to demonstrate what goods or services
were purchased.

Purchases By The Former Director – The former Director used her Town credit
card for 123 transactions totaling $9,183. We determined that 16 transactions
totaling $1,896 were not supported with sufficient documentation to establish the
appropriateness of the purchase. Additionally, the former Director’s transaction
logs that detail credit card transactions were not always prepared timely. Some of
transactions were as follows:

2  Of f ic e of t he New York State Comptroller