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Home My WebLink About1968-1970 `2X-37 TOWN OF SOUJTHOLD COUNTY OF SU"OLK Period Co vored s January 1, 1969 Through December 31, 1970 Report Filed - March 20, 1972 Department of Audit and Control AlbwW# Door York Arthur Levitt, State Comptroller David F. Carlson Examiner-in-Charge Town of Southold AC 1426(5/7 1) TABLE OF CONTENTS Part 1 - GENERAL AND STATISTICAL INFORMATION Page Principal Officers During Period Examined 1 Governing Laws 2 Population 2 Incorporated Villages 2 Districts 2 Assessed Valuations 3 Sugary of Budget and Tax Levy 4 Part 2 - AUTHORITY AND SCOPE OF EXAMINATION Authority 5 Scope of Examination 5 Part 3 - RESULTS OF EXAMINATION i I Financial Condition 5 Audit of Revenues and Receipts Tax Levies 6 Other Revenues and Receipts 6 Audit of Expenditures Disbursement Procedure 6 Compensation for Personal Services 7 Claims 7 Appropriation Control 8 j Indebtedness 8 Social Services 8 Supervisor 9 Town Justices 9 Oaths and Undertakings 9 Part 4 - FINANCIAL STATEMENTS Index to Financial Statements lc Attachment Examiner's Certification i STATE OF NEA YUIik DEPARTMENT OF AUDIT AN 1) CONTROL. DIVISION OF MUNICIPAL. AFFAIRS 1. AC 1 426(5/7 1) Town of Southold GENERAL AND STATISTICAL INFORMATION Principal Officers During Period Examined Supervisor and Social Services Officer Lester M. Albertson (1/1/68 - 12/31/68) " Albert Martocchia (1/1/69 - 12/31/70) i Councilman Howard C. Valentine " Louis M. Demarest (1/1/68 - 12/31/69) James Rich (1/1/70 - 12/31/70) Town Justice Henry A. Clark (1/1/68 - 12/31/69) " Louis M. Demarest (1/1/70 - 12/31/70) i " Martin Suter " E. Perry Edwards Town Clem Albert W. Richmond Superintendent of Highvays Raymond Dean Receiver of Taxes and Assessments George Mellas i I I STAT1�1 OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL DIVISION OF MUNICIPAL AFFAIRS 2. AC 1426(5/71) Town Of Southold Governing Laws Town Law and other general laws of the State of Nev York. Special Acts: Chapter 113, Laws of 1860 Chapter 615, Laws of 1893 Suffolk County Tau Act Suffolk County Charter Of Which Population Town in Village U.S. Census 1970 16,804 2,481 Incorporated Village Wholly within town Greenport Districts Districts With treasurers other than supervisor Fire Districts Cutchogue East Marion Fishers Island Mattituck Orient Southold Park Districts Cutchogue-New Suffolk Mattituck Southold Other Districts Fishers Island Garbage and Refuse District Orient Mosquito District Fishers Island Ferry District Lighting Districts Cutchogue Peccutic East Marion Southold Fisher Island West Greenport Mattituck #1 Mattituck #2 Orient Other - Trustees of the Freeholders of the Commonalty Street Improvement District 1970 East-West Greenport Fire Protection District STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL. DIVISION OF MUNICIPAL AI•'FAIRS 3. AC 1426(5/71) Town of Southold Assessed Valuations For 1970 Real Property $50,932,265.00 Special Franchise 2,008,931.00 Total - Fully Taxable $52,941,196.00 i I Partially Exempt 1,511,820.00 Wholly Exempt 6,973,145.00 Total Assessed Valuations $61,426,161.OQ I I I STATE OF NEW YORK DKI'ARTMENT OF AUDIT AND CONTROL DIVISION OF MUNICIPAL AFFAIRS 4. AC 1426(5/7 1) Town of Southold Summary of Budget and Tax LeV - 1970 Less Estimated Taxes Funds Appropriations Revenues Levied Town-Wide General $506,041.00 $156,105.72 $ 349,935.28 Highway 198,118.44 27,788.44 170,330.00 Tern - Outside village General 484,695.00 67,920.22 41.x,774.78 Highway 326,500.00 21,423.00 305,077.00 Special Districts Fire 182,718.28 Fire Protection 1.6,628.09 Ferry 261182.00 Garbage and Refuse x'9,053.00 Mosquito 4,000.00 Lighting 51,900.00 J, Park 65,905.00 School _2,823,926.3'7 Total Payable to Supervisor $4,442,429.80 Total Payable to County Treasurer 1,123,421.49 Total 5 565,851.29 STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL DIVISION OF MUNICIPAL AFFAIRS 5. AC 1426(5/7 1) Town Of Southold AUTHORITY AND SCOPE OF EXAMINATION Authority i This examination of the accounts and fiscal affairs of the town has been made and the report of examination has been prepared and filed pursuant to the authority vested in the State Comptroller by Article 3 of the General Municipal Law. Scope of Examination Examination of Records The accounting records of town and special district funds and of town) officers and employees were examined. Compliance with statutory requirements was determined 'by an examination of supporting documents and other records. i The examination was made in accordance with generally accepted auditing standards, and accordingly included tests of the accuracy of accounting records, review or internal controls and such other auditing procedures considered necessary. RESULTS OF EXAMINATION Financial Condition I In our opinion the accanpanying statements present fairly the results of financial operations arising from cash transactions for the year ended December 31, 1970. Indebtedness Outstanding indebtedness decreased during the period in the amount of $139,800,00 and aggregated $194,700.00 at December 31, 1970. i I STATE OF NEW TORE DEPARTMENT OF AUDIT AND CONTROL, DIVISION OF MUNICIPAI, AFFAIRS • 6. AC 1426(5/7 1) Town of Southold Audit of Revenues and Receipts Teat Levies Taxes levied were verified to determine whether they were in accordance with the sums authorized. The tax rolls for 1968, 1969 and 1970 were returned to the county treasurer's office in accordance with the requirements of the Suffolk County Tax Act. The statements of returns made by the receiver of taxes and the releases executed by the county treasurer indicated that proper accounting had been made for the total taxes extended on the rolls as shown by the tax warrants. Taxes collected in December of 1970 for the year 1971 and recorded in the cashbook of the receiver were traced to bank deposits. Taxes and penalties payable to the supervisor were traced to his records. Other Revenues and Receipts Moneys received by or due to the town were verified by examination of the records of town officers and employees. Transmittals to the supervisor were traced to his records. Moneys received by town officers, required by statute to be paid to other agencies, were traced to remittances to these agencies. The extent of compliance was observed with respect to statutory restrictions for the deposit, segregation and use of moneys for specific purposes, and statutory requirements for the issuance of receipts where no other evidence satisfactory for purposes of audit was available. Other comments and recommendations on this phase of the examination will be found under appropriate departmental captions. Audit of Expenditures Disbursement Procedure Disbursements were made by checks signed by the supervisor and were supported by abstracts sighed by the town clerk and by audited claims, payrolls, contracts, canceled bonds and notes, or by other supporting evidence. I STATE OF NEW YORK DF.P.ARTMENT OF AUDPF AND CONTROL, DIVISION OF MUNICIPAL AFFAIRS 7. AC 1426(5/71) Town of Southold Compensation for Personal Services Payrolls were certified by town officials and by the Suffolk County Civil Service Commission. Compensation paid to officials and employees was at the rates established for the positions and within the available appropriations. Claims The comments which follow are based upon examination of the claims for legality and validity. Purchase in Excess of $1,000.00 No record was found to indicate that bids were requested by public advertising for the purchase of an electronic calculator and purchase of highway signs aggregating in excess of $1,000.00 in 1970. Except as otherwise provided by law, a,ll purchase contracts in excel of $1.,000.00 should be awarded to the lowest responsible bidder after public advertisement for bids (General Municipal Law, $103) . Petty Cash A $50.00 petty cash fund was established during 1969 for the police department. Lump sum payments of $50.00 made to replenish the fund were not supported by paid bills or other evidence of expenditures. Bills sufficient in form for audit by the town beard should be required for all disbursements from the petty cash fund. At each torn board meeting a list of such expenditures, together wit the bills supporting the expenditures, should be presented to the town board for audit (Town Law, §64(l-a)) . Historical Organizations Annual allowances of $1,000.00 were paid each year during the period examined to help defray the cost of operationsc for the following organizations: Mattituck Historical Society Oysterponds Historical Society Southold Historical Society Cutchogue-New Suffolk Historical Council No contracts were found to have been executed between the town and the historical societies. There is no statutory authority permitting the town to contribute municipal funds to private historical societies. STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL DIVISION OF MUNICIPAL AFFAIRS 8. AC 1426(5/71) Town of Southold Pa,nent to Wunnewata Pond Association on June 9, 1970, a payment of $475.00 was made to the Wunnewata Pond Association for dredging work done. A pond association has no authority to contract for services on behalf of a town and later be reimbursed. Expenditures for Publicity In the 1970 year a dues payment of $1.00.00 was made to the Long Island Association, a publicity organization. ., There is no statutory authority for a torn to pay dues to a publicity organization. I Appropriation Control Expenditures were kept within the limits of appropriations as required by Torn Law, §117. I Indebtedness A summary statement of the indebtedness of the town is shown in Exhibit C. Except as otherwise stated, all obligations were authorized and issued and the proceeds were deposited, expended and accounted for in ccmpliance with applicable provisions of the Local Finance Law. Proceeds from Notes i The proceeds of a bond anticipation note issued during 1969 were paid directly to the Cutchogue-New Suffolk Park District. i Where bond anticipation notes are issued to finance an improvement in a special improvement district governed by a separate board of cammissioneis, the proceeds of the obligations should be retained by the supervisor and not paid to the district treasurer (9 op. State compt. 45, 1953) . 1 Social Services Administration of Public Assistance and Care Home relief and burials for local charges are administered by the town pursuant to Social Services Law, §69(1.) . Moneys appropriated for public assistance and care were disbursed by the town supervisor acting as social services officer. Claims for state aid were based upon expenditures actually made and recorded in the social services account with the exception of items totaling $853.10. srATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL. DIVISION OF MUNICIPAI. AFFAIRS i I AC 1426(5/71) Town of Southold Supervisor Reserve for Building Construction Torn board minutes of December 8, 1970 authorized the establishment of a building and construction account in the amount of $20,000.00. This money was transferred to the trust and agency bank account. j Reserve fund moneys are required to be deposited in a separate bank account (General Municipal Law, §6-c(7)) . I I Town Justices j I Late Deposits I The town justices who served during the period were occasionally late in depositing fines, fees and bail in their official bank accounts. Rule 7 of the Administrative Board of the Judicial Conference requires all moneys to be deposited in the official bank accounts within seventy-two hours after receipt. A similar comment was made in our last report of examination. Oaths and Undertakings Oaths of Office I Examination of the oaths of office on file disclosed that tcnm officials filed oaths of office in statutory form and for the period examined. Official Undertakings I All of the required undertakings were found on file for the period examined. I i i STAT K OF NEINYORK DEPARTMENT OF AUDIT AND CONTROL DIVISION OF MVNICIPAI. AFFAIRS