An audit released by the New York State Comptroller’s Office in April found that the town of Davenport failed to conduct a required annual audit of the supervisor’s financial records and filed its 2024 financial report to the state more than five months late, raising concerns about transparency and oversight of town finances.
The audit reviewed the period from Jan. 1, 2024, through May 1, 2025, while also examining annual financial report filings dating back to 2010. Auditors said the town board did not perform an annual audit of Supervisor Timothy Kelso’s records for fiscal year 2024 as required under New York State Town Law.
The comptroller’s office said the supervisor filed the town’s 2024 annual financial report on Aug. 1, 2025 — 152 days after the statutory deadline. Auditors also found that annual reports for 2010 through 2023 had not been prepared, filed or made publicly available as of Nov. 28, 2025.
Town officials budgeted about $1.5 million in combined general and highway fund appropriations in 2024 for services including snow removal, highway maintenance and fire protection in the town of roughly 2,955 residents.
According to the audit, inaccurate accounting records resulted in misleading monthly financial reports presented to the board. Auditors found liabilities totaling about $165,250 had remained improperly carried in town records for years and that approximately $1.2 million in fund balance was recorded in a single equity account rather than separated by operating fund classifications.
“Without complete, accurate and reliable financial information, the Board cannot effectively monitor the Town’s financial position and available fund balance to make informed decisions,” the report stated.
Auditors said the board’s failure to conduct annual audits may have prevented officials from identifying and correcting accounting deficiencies earlier.
The report noted that the current bookkeeper, appointed in June 2024, told auditors the inaccuracies originated under a previous bookkeeper and were in the process of being corrected. Still, the comptroller’s office said responsibility for accurate accounting ultimately rests with the supervisor.
The audit also found that the town did not make the 2024 annual financial report available to the public after filing it with the state.
Although auditors said they “did not identify any significant fiscal concerns” after analyzing bank balances for the general and highway funds, they concluded that delayed filings diminished transparency and limited the public’s ability to evaluate the town’s financial condition.
The comptroller’s office issued six recommendations aimed at improving financial reporting and oversight. The town board is required to submit a corrective action plan within 90 days.
In a written response dated April 6, Supervisor Timothy Kelso said town officials were prepared to begin corrective action.
“We are ready to begin corrective action of the audit,” Kelso wrote. “Thank you both for your help and understanding of the situation.”
To read the full report, click here.
