Lawrence control procedures questioned

Based on a New York State comptroller’s audit, the Village of Lawrence needed to improve its fiscal management procedures and processes concerning procuring services and over its information technology.

State auditors found that the Village of Lawrence board of trustees didn’t provide the proper oversight to several financial activities. The audit spanned from June 1, 2008 to Oct. 31, 2009. Lawrence reported spending approximately $10.5 million during that time period.

Village Mayor Martin Oliner said that the relationship between the auditors and village was cooperative and cordial as most of the controls the report cited had been implemented in his first 90 days of being mayor last year.

“The village is run differently today than it was, there is no reason for short cuts,” Oliner said. “I have taken ownership of this responsibility. The way the village is structured one person is in charge and that is the mayor.”

The board didn’t audit claims and permitted the former village administrator Dan Heron to pay claims before telling the trustees what claims were paid. Thirteen of 18 checks — a total of $129,106 — were reviewed and auditors found that Heron, who was fired more than two years ago, issued the checks and they were cashed by vendors before the information regarding those payments were presented to the board of their approval.

Ten of those 18 claims didn’t include the correct documentation such as a purchase order, formal claim voucher or the signature of a village official to ensure that those goods and services were received the payments were accurate.

Trustee Michael Fragin noted that a majority of the problems highlighted in the report have been rectified. “The current mayor (Martin Oliner) has done a very good job,” said Fragin, who noted it was just a matter of catch up for the village regarding its computer system.

Village controls over payroll and personal services also needed to be improved. Vacation days were used, but not deducted from Lawrence’s leave-time records, while three village employees got leave time and/or payments of $13,914 they weren’t entitled to receive.

Lawrence officials also needed to upgrade internal controls over purchasing and information technology. The report noted that the village hired a dozen service providers — paid a total of $935,186 — with putting out the proper competitive bidding or Request For Proposals.

"Without the solicitation of competition, there is an increased risk that professional services of appropriate quality will not be obtained, and that public moneys will not be used in the best interest of the taxpayers,” the auditors noted in their report.

In addition, auditors discovered that village computer use appears to be open to all employees and not limited based on assigned job responsibilities, the servers are not stringently protected from fire or water damage and backup copies are not stored off-site. These problems could lead to unauthorized access to the system and critical loss of information and interruptions of computer operations, the report noted.

“Residents of the village can feel rest assured that things are being done correctly,” said Oliner, who noted the use of a signature stamp that appeared to be used without authorization was eliminated and all checks are now signed by hand.