By Tom Grace
Cooperstown News Bureau
COOPERSTOWN _ An audit released this week by the state Comptroller’s Office criticizes the way Otsego County handled money in 2005 and 2006.
According to the report, which covers all of 2005 and from Jan. 1 to July 17, 2006, the county treasurer and Board of Representatives had shortcomings. During this period, the county was served by two treasurers, Theodora Moore and Myrna Thayne, who succeeded Moore at the start of 2006. Both are Republicans.
The board, which changed significantly after the 2005 election, ``did not provide adequate oversight over the treasurer’s operations and did not provide necessary resources and technologies to help staff perform their duties until the middle of 2006, when a new computer system was acquired,’’ the report reads.
``The treasurer did not develop written policies and procedures to manage operations efficiently and effectively,’’ according to the audit. ``These conditions, coupled with high staff turnover, perpetuated practices that were duplicative and time-consuming. Consequently, accounting records and financial reports were not current and several departments expended their own resources to maintain records.’’
The audit also criticizes the county’s investment policy as ``not comprehensive, nor was it periodically updated. In addition, interest revenue was not maximized. We estimated that for a six-month period in 2006, approximately $85,000 in additional interest revenue could have been earned by investing idle funds at the highest available rates.’’
Thayne commented extensively on the state’s findings, and her statements were incorporated into the audit.
In a letter dated June 4, she wrote, ``Although I worked as a senior staff member for 15 years prior to taking office, I was not fully aware of the true state of affairs in the county treasurer’s office. Without the aid of your regional office staff, I believe the office of county treasurer would not have successfully achieved the necessary changes to move forward and correct the errors of the past administration.’’
Moore could not be reached for comment Tuesday afternoon.
Thayne said Tuesday that many of the problems noted by auditors have already been corrected.
``I don’t look upon this as something bad for Otsego County,’’ she said. ``This is a free resource provided by the state to let us know how to do things better, and that’s what we’re doing.’’
Thayne and Board Chairman Donald Lindberg, R-Worcester, said the county’s finances have been tracked much more closely since a computer system was installed in the Treasurer’s Office last year.
``Before that, we were doing things by hand and we were months behind,’’ Thayne said.
Lindberg agreed.
``We knew we needed that computer system if we were ever to get on top of our finances," he said. ``Now, we can get monthly reports and try to avoid surprises.’’
Thayne and Rep. Ronald Feldstein, D-Otego, who chairs the county’s Administration Committee, said the county also is doing much better at maximizing its investments.
Thayne said her office is scanning the checks the county receives so they are automatically deposited in interest-bearing accounts.
Lindberg, who succeeded Carl Higgins, R-Edmeston, as board chairman in January 2006, said he agrees with most of the auditors’ conclusions. However, he sent a letter to the Comptroller’s Office, objecting to ``findings of inadequate oversight by the county board.’’
``Prior to Jan. 1, 2006, oversight of the county treasurer’s operations was generally in the hands of the board chairman,’’ he wrote. ``Since Jan. 1, 2006, the Otsego County Board of Representatives, through its Administration Committee, has provided significant oversight to the county treasurer’s operations.’’
Lindberg stated the committee has regularly requested reports from the treasurer, reviewed the county’s investment policy and met with financial consultants.
On Tuesday afternoon, Higgins declined to comment on the audit or how others characterize it.
Thayne said she is working on a plan of corrective action.
``The next thing we’re going to work on is payroll,’’ she said.
The Comptroller’s Office had recommended ``the treasurer should provide adequate segregation of duties so that no one person controls all aspects of the payroll process.’’
Thayne said she is hiring a person to help with payroll and will work out a more-segregated system starting in July.
``We have a lot more to do, but we’re moving in the right direction,’’ she said.
