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Home My WebLink About1968-1970 (3) 722-37 TOWN OF SOUTHOLD COMITY OF SUFFOLK Period Covered.: JsnuuT 1, 1968 Through December 31, 1970 Report Filed - March 20, 1972 Department of Audit and Control AlbwW, New York Arthur Levitt, State Comptroller David F. Carlson Examiner-in-Charge Town of Southold AC 1426(5/71) 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 Summary of Budget and Tax Levy 4 Part 2 - AUTHORITY AND SCOPE OF EXAMINATION i Authority g Scope of Examination 5 Part 3 - RESULTS OF EXAMINATION Financial Condition S 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 Indebtedness 8 Social Services 8 Supervisor 9 Town Justices 9 Oaths and Undertakings 9 Part 4 - FINANCIAL STATEMENTS Index to Financial Statements 10 Attachment Examiner's Certification STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL. DIVISION OF' MUNICIPAL. AFFAIRS 1. AC 1426(5/71) Town of Southold GENERAL AND STATISTICAL INFORMATION Principal Officers Daring Period Examined Supervisor and Social Services Officer Lester M. Albertson (1/1/68 - 12/31/68) " Albert Martocchia (1/1/69 - 12/31/70) 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) it Louis M. Demarest (1/1/70 - 12/31/70) „ Martin Suter " E. Perry Edvards Town Clerk Albert W. Richmond Superintendent of Highways Raymond Dean Receiver of Taxes and Assessments George Mellas I f STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL. DIVISION OF MUNICIPAL, AFFAIRS 2. ,oc 1426 t5i7 1 I Town of Southold Governing Laws Town Law and other general laws of the State of New York. Special Acts: Chapter 113, Laws of 1860 Chapter 615, Laws of 1893 Suffolk County Tax 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 Cutchotue 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 Peconic East Marion Southold Fisher Island West Greenport Mattituck #1 Mattituck #2 Orient Other - Trustees of the Freeholders of the Commonalty Street Improvement District 1970 Esst-West Greenport Fire Protection District STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL, DIVISION OF MUNICIPAI. AFFAIRS 3. AC 1426(5/7 1) 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 Partially Exempt 1,5119820.00 Wholly Exempt 6,973,145.00 Total Assessed Valuations $61,426,161.00 I ` I STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL. DIVISION OF'MUNICIPAI. AFFAIRS 4. Town of Southold AC 1426(5/7 1) Summary of Budget and Tax Levy - 1970 Less Estimated Taxes Funds Appropriations Revenues Levied Town-Wide General $506,041.00 $156,105.72 $ 349,935.28 Highway 1989118.44 27,788.44 170030.00 Town - Outside Village General 484,695.00 67,920.22 416,774.78 Highway 326,500.00 212423.00 305,077.00 Special Districts Fire 182,718.28 Fire Protection 16,628.09 Ferry 26,182.00 Garbage and Refuse 299053.00 Mosquito 41000.00 Lighting 51,900.00 Park 65,905.00 School 2823,926.37 Total Payable to Supervisor $4,442,429.80 i Total Payable to County Treasurer 1,223,421.49 Total $5,565,851.29 i i i STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL. DIVISION OF MUNICIPAL AFFAIRS 5. AC 1426(5/71) Town of Southold AUTHORITY AND SCOPE OF EXAMINATION Authority This examination of the accounts and fiscal affairs of the torn 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. The examination was made in accordance with generally accepted auditing standards, and accordingly included tests of the accuracy of accounting records, review of internal controls and such other auditing procedures considered necessary. RESULTS OF EXAMINATION Financial Condition In our opinion the accompanying 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 $139,800.0 and aggregated $194,700.00 at December 31, 1970. I i STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL, DIVISION OF MUNICIPAL AL'FAIRS 6. AC 1426(5/71) Town of Southold Audit of Revenues and Receipts Tax 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 remittan es 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 signed by the town clerk and by audited claims, payrolls, contracts, canceled bonds and notes, or by other supporting evidence. STATE OF NEW TORR DEPARTMENT OF AUDIT AND CONTROL DIVISION OF'MUNICIPAL AFFAIRS 7. AC 1426(5/7 1) 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, all purchase contracts in excess 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 board should be required for all disbursements from the petty cash fund. At each town board meeting a list of such expenditures, together with the bills supporting the expenditures, should be presented to the town board for audit (Town Law, §64(1-a)) . Historical. Organizations Annual allowances of $1,000.00 were paid each year ing the period examined to help defray the cost of operations 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 I Payment 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 pagment of $100.00 was made to the Long Island Association, a publicity organization. There is no statutory authority for a town to pay dues to a publicity organization. Appropriation Control Expenditures were kept within the limits of appropriations as required by Town 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 compliance with applicable provisions of the Local Finance Law. Proceeds from Notes The proceeds of a bond anticipation note issued during 1969 were paid directly to the Cutchogie-New Suffolk Park District. Where bond anticipation notes are issued to finance an improvement in a special improvement district governed by a separate board of commissioners, the proceeds of the obligations should be retained by the supervisor and not paid to the district treasurer (9 Op. State Compt. 45, 1953) . 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. i i Claims for state aid were based upon expenditures actually made and recorded in the social services account with the exception of items j totaling $853.10. STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL DIVISION OF MUNICIPAL AFFAIRS 9• AC 1426(5/71) Torn of Southold Supervisor Reserve for Building Construction Town board minutes of December 8, 1970 authorized the establishment of a building and construction account in the amount of $200000.00. This money was transferred to the trust and agency bank account. Reserve fund moneys are required to be deposited in a separate bank account (General Municipal Law, §6-c(7)) . Torn Justices Late Deposits 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 Examination of the oaths of office on file disclosed that tovn officials filed oaths of office in statutory form and for the period examined. Official undertakings All of the required undertakings were found on file for the period examined. STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL. DIVISION OF'MUNICIPAL AFFAIRS lo. AC 1426(5/71) Town of Southold Index to Financial Statements Summary of Cash Balances, Receipts and Disbursements Exhibit A Operating Funds - Summary of Cash Receipts Schedule 1 Summary of Cash Disbursements Schedule 2 Trust and Agency Funds - Statement of Closing Balances Exhibit B Statement of Indebtedness Exhibit C i I i STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL, DIVISION OF MUNICIPAL At-FAIRS Town of Southold AC 1426(5/71) EXHIBIT A SUMMRY OF CASH BAUMES, RECEIPTS AND DISBURSEMENTS Year Ended December 31, 1968 Balance Balance Beginning Close Fund of Year Receipts Disbursements of Year Town-Wide General $120,017.77 $ 453,417.65 $ 4519488.91 $1211946.51 Highway 65,397.01 168,3€38.28 163,261.61+ 70,523.65 Part-Town General 66041.38 3222024.22 354,728.18 33,837.42 Highway 71,195.86 238,838.19 250017.07 59,516.98 Special Districts 5,791.22 21202,944.87 2,201,806.06 6,930.03 Totals $3328L94'�2_4 13,385,613.21 $3,421,801.86 P22 754.59 Year Ended December 31, 1969 Balance Balance Beginning Close Fund of�Year Receipts Disbursements of Year Town-Wide General $121,946..51 $ 502,514.11 $ 462033.22 $161,927.40 Highway 70,523.65 176,476.26 1830283.31 63,716.60 Part-Town General 33,837.42 438,476.10 398,021.54 714,291..98 Highway 59016.98 275053.83 319,729.41 15041.40 Special Districts 62930.03 2,884,121.65 2,882,345.13 8,706.55 Totals e921754 59 X77'1 5,912.61 23,983.93 " s i STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL DIVISION OF MUNICIPAL. AFFAIRS Torn of Southold AC 1 426(5/7 1) EXHIBIT A (Contd.) Year Ended December 31, 1970 Balance Balance Beginning Close Fund of Year Receipts Disbursements of Year Town-Wide General $161,927.40 $ 512,533.14 $ 527,778.81 $1469681.73 Highway 63,716.60 182,397.67 190,831.78 550282.49 Part-Town General 74,291.98 476,800.37 491,5+8.77 59043.58 Highway 159341.40 3360028.11 2869485.29 643,884.22 I Special Districts 8,706.55 3,206z323.92 39205,703.08 9,327.39 ' Totals $323,983.93 $4g714,283.21 $4,7021347.73 $3351719.41 I i I I STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL DIVISION OF MUNICIPAL, AFFAIRS D n A N 01 j SCHEDULE 1 OPERATING FUNDS SUMMkRY OF CASH RECEIPTS - BY CATEGORY Year Ended December 33, 1970 Town-Wide Part-Town Special d General Highway General Highway Districts 7 k Real Property Taxes $349,935.28 $170,330.00 $41.6,774.78 $305,077.00 $3,200,312.74 z> Other Payments in Lieu o of Taxes 3,235-56 7 a State Aid 108,018.49 4,694-75 21,908.32 2o,541.83 Interest and Penalties 3,882.19 a A Fines, Penalties and Forfeitures 7,770.00 r C r Repayment of Social Services 1,080.60 Interest Income 16,719.81 7,372-92 17,o48.32 5,877-07 Departmental Earnings 19,629.74 12,312.94 Rental of Vehicles 1,207.00 3,600.00 Miscellaneous 1,044.47 5,156.01 11.18 Proceeds of Borrowings 6,000.00 Refunds 4x532.21 Total Receipts (To Exhibit A) 5122z533.14 $1182397.67 k76,800.37 t336,028.11 13,206,323.92 0 oe cn 2 r+ a 0 Town of Southold AC 1426(5/71) SCHEDULE 2 OPERATING FUNDS SUMMARY OF CASH DISBURSEMENTS Year Ended December 31, 1970 Town-Wide Part-Town GeneralH General H hwa General Government $226,956.27 23,721.58 Safety 11,053.53 374,974.27 Transportation 6,600.32 Education 19200.00 Sanitation 44,151.32 2,500.00 Health 131.40 Recreation 82,600.50 Social Services 48,418.02 Home and Community Services 8,251.94 30,083.54 Employee Benefits 41,802.69 $ 220171.01 60,269.38 $ 34,.340.85 Debt Service - Principal 33,450.00 Debt Service - Interest 2,287.15 Miscellaneous 875.67 Repair and Improvement of Highways 2520144.44 Machinery 80,208.94 Snow and Ice Control 69,530.63 Miscellaneous Highway 18,921.20 Transfer 20,000.00 Total Disbursements (To Exhibit A) $527,778.81 $1909,831.78 $491,548.77 $2861485.29 i ` STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL, DIVISION OF'MUNICIPAI, AFFAIRS Town of Southold i i I SCHEDULE 2 (Contd.) SPECIAL DISTRICTS SUMMARY OF CASH DISBURSEMENTS Year Ended December 31, 1970 i i i Fire Street Lighting Fire Protection Park School Improvement Mosquito Ferry Garbage � Districts Districts District Districts Districts District District District District Total Operation and Maintenance $51,682.97 $16,235.46 $ 67,93$.43 Debt Service - Principal $ 5,000.00 5,000.00 Debt Service - Interest 966.50 966.50 Construction of Permanent Improvements from Obligations Issued $6,000.00 6,000.00 Payments to Treasurers of Districts W2s718.28 59,9 •50 ,823,926.37 4000.00 $226,182.00 $292053.00 3,125,818.15 Total Disbursements $51,682.97 $182#718.2$ 116,,235-46 $65*905-00 $2 823 7 At222.04 000.00 126,182.00 053.40 To Exhibit A $3t205,701.08 I STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL DIVISION OF MUNICIPAL AFFAIRS 'r ifs Town of Southold AC 1426(5/71) EXHIBIT B TRUST AND AGENCY FUNDS STATEMENT OF CLOSING BALANCES AT DECEMBER 319 1970 Fund Cash Balances Social Security $ 6,876.09 Reserve for Building Construction 20,000.00 Confiscated Money 41.00 Tax Account 1,350068.89 Lester Albertson General Account 1.00 $1,377,886.98 STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL DIVISION OF MUNICIPAL. AFFAIRS D n A N T Ii EXHIBIT C STATEMENT OF INDEBTEDNESS Year Ended December 31, 1970 Issued Paid Outstanding During During Outstanding Purpose January 1, 1970 Year Year December 31, 1970 d d Bond Anticipation Notes $ 6 ,650. 33, +50.00 $ 27,200.00a 1_ _ I I 00 z z Special District Bands o 3> r>° Mattituck Park District $ 19,000.00 $ .00 2,000.00 $ 17,044.00 d Cutchoipe-New Su"olk Park District 9,044.04 .00 3,444.44 6,o40.00 . � a� I; T C Total 28,040.0o $ .00 > 5,000.44 $ 233,000-00 c L--00 x x Special District Notes Fishers Island Ferry District $135,440.04 $ .00 $20,44o.40 $115,444.00 Cutcholpe-Nev Suffolk Park District 23,504.00 .00 .00 23,500.00 Street Improvement District .00 6,000.0o .40 6,444.44 Total $158y500-00 M1222..00 "`000:04 $144,500-00 0 ua 0 C Cr 0 AC 1426(5/71) Certification I, DAVID F. CARLSON, do hereby certify that I an an Examiner in the New York State Department of Audit and Control; that pursuant to law I have made an examination of the Accounts( and Fiscal Affairs of the TOWN OF SOUTHOLD, COUNTY OF SUFFOLK; that I have read the foregoing report of such i examination and that the some is true to the best of my knowledge, information and belief. Dated ; U1�C.� l 7 t C1 7 ^" Nj CW4 ti 3 t Senior Examiner of Municipal Affairsi f i STATE OF NEW YORK DEPARTMENT OF AUDIT AND CONTROL. DIVISION OF MUNICIPAL AFFAIRS