North Haven Did Not Properly Collect $829K, Audit Finds

Village of North Haven officials did not properly collect, record or deposit more than half of taxpayer funds over a three-month period, according to the New York State Comptroller Thomas DiNapoli’s office.

Those were the findings based on a review of 922 collections worth $1.4 million, with 486 collections totaling $829,694 having one or more discrepancy during the summer of 2022, according to the 14-page state audit released on Dec. 12.

“The village has an increased risk that funds could be lost, misused or misappropriated,” auditors stated in the report. Furthermore, building department records were not properly maintained,  and independent reviews and reconciliations were not performed. As a result, errors and irregularities were not detected and corrected.”

Auditors found 72 collections totaling $238,032 did not indicate if payment was cash or check, making it impossible to determine how the deposits were made. The audit also found  358 collections totaling $537,175 did not indicate the date of receipt, making it impossible to know if the funds were deposited within 10 days as required by law. In addition, 69 collections totaling $57,426 were not recorded on a timely basis, increasing the risk for errors or misappropriations, the audit stated.

The village board did not adopt written collection policies and procedures to provide guidance to employees who collected, recorded, and deposited collections, the auditors added. The board also did not review the village clerk-treasurer’s work. Similar issues were found in a review of 145 permits that the village building department issued for fees of $125, $250, or $400.

The state recommended that the village adopt policies to correct the issues, deposit funds in a timely manner, and improve its bookkeeping. The village agreed to an action plan.

“The board and the village clerk-treasurer will work together to update the accounting policy to ensure that collections are processed and recorded properly in accordance with village law,” North Haven Village Mayor Chris Fiore wrote in a Nov. 13 response to the audit. “We expect to plan to have the policy in place by Jan. 31, 2025.”