Amenia clerk's office under scrutiny by state

AMENIA — The state’s comptroller’s office has released a report on the town clerk and the office of the tax collector detailing major financial discrepancies of thousands of dollars, misappropriations, faulty office procedures and a lack of oversight on behalf of the Town Board. The town clerk and the tax collector positions are held by the same person in Amenia.

The report was compiled from an audit conducted by the state’s comptroller’s office during the period from Jan. 1, 2003, to March 1, 2006.

It cites a cash shortage of $16,113 in the town clerk’s office, and a cash shortage of $3,698 in the tax collector’s office, both during the tenure of former Town Clerk Julia Bouffard, from the beginning of 2003 to the end of 2004.

The same reports cited current Town Clerk Gail Hermosilla as having an unexplainable cash overage of $402 in the clerk’s office, but no cash shortage in the tax collector’s office.

“Internal controls over the former and current clerk’s office operations were not adequate to properly safeguard assets from errors, misuse or theft,†the report on the town clerk states. “The former clerk did not properly receive, record, support and deposit receipts in a timely manner. Internal control weaknesses continue to exist in the current clerk’s office.â€

The report cites the clerk’s office for a lack of policies, procedures and segregation of duties that existed in both Bouffard’s and Hermosilla’s offices.

“Neither clerk performed bank reconciliations, and the [Town] Board failed to provide necessary oversight to insure that appropriate controls were in place in the town clerk’s office,†the report states. “As a result, the town hired a certified  public accountant to prepare bank reconciliations for the months November 2004 to December 2005. We also found that the clerk does not maintain a complete and proper check register, which theoretically should serve as the clerk’s cash record, and the clerk does not have a policy or procedures to address bounced checks and related charges.â€

The report states that Bouffard may have intentionally not recorded receipts on daily cash reports and did not prepare accountability statements to “decrease accountability for money received.â€

The state cited Hermosilla for an inability to properly account for and transmit cash collections, but did not find a cash deficiency in her office.

The report cited both Hermosilla and Deputy Clerk Patty Barron for not using password protection on their computers, for keeping undeposited receipts in an unsecure location and for keeping bank records and check stock stored on an open shelf.

In the report on the tax collector’s office, it cites that Bouffard made many errors and irregularities in record keeping.

“The collector’s cash records indicated that she collected $4,453 in penalties for late payment of taxes during 2004; however, only $3,568 in tax penalties was remitted to the town supervisor, a difference of $885,†the report states. “We identified  a $3,698 cash shortage in the former collector’s operations. Although significant internal controls weaknesses continue to exist in the current collector’s office, we did not identify a cash shortage for the current collector’s operations.â€

Town supervisor Janet Reagon, who did not work for the town during Bouffard’s time in office, said the town has taken steps to fix the problems cited in the state’s report.

“We were cooperative and appreciative to the audit, and we have implemented many of their recommendations,†Reagon said.

In a letter to the comptroller’s office, Reagon wrote that Hermosilla is preparing new written policies and procedures, new segregations of duties, including a monthly report, duplicate receipts for all cash records and monthly bank reconciliations. She wrote that similar steps have been taken in the tax collector’s office.

Despite the new policies and procedures, Councilman Wayne Euvrard is very critical of the clerk’s office.

“I have heard that [Hermosilla] only works in Town Hall one day a week, and at budget time she told [the board] that it was not true, but in the audit this is clearly stated,†Euvrard said. “The deputy is working there 90 percent of the time. I’ve talked to other town clerks in other towns and they can’t believe she does that, and her salary is over $27,000.â€

Reagon said Hermosilla does not have a set schedule of hours.

“She is an elected official who is salaried, and she is not subject to an hourly rate or anything,†she said. “Whether she is here one day a week or five, it’s really up to the voters. It’s just like my position, where previous supervisors have been here one or two days a week, but I choose to be here every day.â€

As for the shortage of funds during Bouffard’s time in office, she said the only thing she could state is that the state police are investigating.

“All I can tell you is all I know, and that it was turned over to the district attorney in Dutchess County and they turned it over to the state police,†she said.

Euvrard said that he hopes the discrepancy is a bookkeeping error.

“Unfortunately, when someone takes the position over from another person, there is no training in the post,†he said. “Some people say that she [Bouffard] did a good job and that she was a people person, but nothing was spelled out or explained to her when she took over the job. Key Bank was changing around and they had some problems with bank accounts, so I’m hoping it’s all a bookkeeping error.â€

Efforts to reach Hermosilla were unsuccessful as she is away on vacation. Bouffard was also unreachable as has she moved out of the area with her family.

Copies of both reports are available in full online at www.osc.state.ny.us/localgov/ or by calling 518-474-4015.