Audit Criticizes Trustees for Delayed Deposits

The Southampton Town Trustees recently received the results of an audit by the New York State comptroller's office, and while the inspection of the books did not turn up any egregious errors, the trustees were directed to make sure money that comes into their office is deposited sooner rather than later.

The audit looked at the period from Jan. 1, 2012 through Jan. 9 2013. The comptroller's office found that cash receipts totaling $13,322 were deposited as long as 11 to 21 days after being received.

The audit states, "Although we found all deposits to be intact, the failure to deposit receipts in a timely manner increases the risk that moneys received will not be properly accounted for, that moneys could be lost or stolen, or that the Trustees will lose interest that could have been earned if moneys had been deposited timely."

Town Trustees President Eric Shultz said long delays were an anomaly, during a time when the office was understaffed, which is no longer an issue.

"Auditors spent a month looking through our books and found everything was where it was supposed to be,” he said.

Explaining some delays in when money is deposited, Shultz said that often checks are sent in by mail to purchase permits, which could be modified or rejected. So, what often happens is, the checks are held until the permits are approved, so the trustees office does not go through the trouble of depositing then refunding money, he said.

However, he said that the trustees office is now being set up with a Chase check reader, so deposits may be made without a trip to the bank.

“We’re going to be even more efficient,” Shultz said.

Additionally, the audit stated that $38,097 in cash balances were not FDIC insured. The Trustees maintain eight bank account spread among five banking institutions, according to the audit, which recommended the trustees adopt an investment policy and consolidate accounts.