Publisher's summary
The Board and Village officials did not establish adequate internal controls over Department cash receipts. The Board did not adopt written cash receipt policies, cash receipt duties were not properly segregated and the Supervisor did not adequately oversee the cash receipt function. As a result, the attendant had almost complete control over the cash receipts without adequate oversight. From August 1, 2011 through November 30, 2017, we reviewed approximately 2,000 receipts issued by Department employees for cash collections totaling approximately $264,000. We estimate that additional unreceipted cash of $14,000 was collected for swim gate fees during this period. However, the attendant reported cash collections of approximately $107,700, a cash shortage of more than $170,000. During this period, less than half the amount of cash receipted by employees was remitted to the Treasurer. OSC's Division of Investigations in conjunction with the Erie County District Attorney's Office jointly investigated this matter. In October 2018, the attendant admitted stealing more than $150,000 from the Village and altering public records from 2011 through 2017. She pleaded guilty to grand larceny, false filing and official misconduct in October 2018 and was sentenced in March 2019. As part of her sentence, she repaid the Village $156,374.
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The attendant was able to misappropriate a significant amount of cash without
detection because the Board and Village officials did not provide sufficient
oversight of Department financial activities. The attendant did not provide a
reasonable explanation for any of the discrepancies identified in this report. Our
Division of Investigations notified the County District Attorney of the attendant’s
misappropriation in November 2017. Village officials placed the attendant on paid
administrative leave and eventually terminated her employment. Because of the
numerous missing receipts and records, the actual cash shortage is most likely
greater than the amounts identified in this report.
In October 2018, the attendant admitted stealing more than $150,000 from
the Village and altering public records from 2011 through 2017. She pleaded
guilty to grand larceny, false filing and official misconduct in October 2018 and
was sentenced in March 2019. As part of her sentence, she repaid the Village
$156,374.
What Do We Recommend?
The Board and Village officials should:
1. Adopt written policies and develop procedures for the collection and
accounting of Department cash receipts that address segregating duties
and provide guidance for recording, reconciling and depositing fees.
The Supervisor should:
2. Ensure cash collections are properly receipted and recorded at the time of
collection and adequately secured until deposit.
3. Provide proper oversight of the cash receipt process and ensure an
employee other than the attendant reconciles the cash report, press-
numbered receipts and deposit.
4. Ensure money is remitted to the Treasurer in a timely manner.
Of f ic e of t he New York State Comptroller 7