The village of Sidney did not properly monitor its finances, and as a result overstated its general fund balance by $571,719, for fiscal year 2021-22, according to an audit report issued by the New York State Comptroller’s Office May 19.
Because of the lack of oversight, the audit said, transparency of village financial operations was compromised, and taxpayers were not assured trustees were effectively monitoring airport operations and financial conditions.
Lack of monitoring also resulted in the village’s municipal airport operating at a deficit in excess of $293,000, the report continued; and of the $575,182 in delinquent taxes dating back to 2011-12, officials could not identify which taxpayers owe $60,452 of that total.
Additionally, the report states, general fund assets were overstated by $288,510 and liabilities by $434,929 in 2021-22.
Two capital project funds and three community development funds also carry negative fund balances that may require a transfer from the general fund to pay remaining liabilities, the audit continued.
Nearly $700,000 of the village’s $1 million fund balance may be needed to satisfy the liabilities.
To rectify the issues, the comptroller’s office recommended Sidney officials analyze airport revenue and expenditures to determine whether revenues are adequate to cover expenditures and take appropriate action as needed to help ensure the airport is self-sufficient. The comptroller’s office further recommended the village collect delinquent real property taxes and maintain proper accounting records to make financial decisions.
Village officials generally agreed with the comptroller’s office findings and plan to initiate corrective action. On May 8, Sidney Mayor Ray Baker issued a written response indicating that it has assigned additional monitoring tasks to the village’s airport committee, and committee members will work with the airport manager weekly to monitor fuels sales and adjust prices accordingly; collect rental and fuel payments, and late fees will be assessed for non-compliance with leases. The airport will have fewer expenditures, Baker said in his response letter, because the airport manager is no longer full-time and receiving benefits.
To collect delinquent taxes, the village will send out a follow up letter to delinquent taxpayers and develop a delinquent tax collection policy. The village clerk will also work with an accounting firm that performs the village’s annual audit to create separate banking accounts integrated with new financial software. All new projects will have financing in place prior to the commencement of a project, Baker continued in his response.
The audit report can be read in its entirety here.
