ULSTER COUNTY COMPTROLLERS OFFICE

THE QUARTER IN REVIEW 2nd QUARTER 2013

August 19, 2013

Elliott Auerbach, Comptroller

The mission of the Ulster County Comptrollers Office is to serve as an independent agency of the people and to protect the public interest by monitoring County government and to assess and report on the degree to which its operation is economical, efficient and its financial condition sound.

2013 2nd Quarter In Review August 19, 2013 I. INTRODUCTION

This Quarterly Report (Report) is issued pursuant to Ulster County Charter (Charter) Section C-57(I). Our 1st Quarter 2013 Report focused in large part on the challenges faced by the County with respect to its financial oversight in connection with Charter changes adopted in the last quarter of 2012. In this Report, we note the continued success of the transition in procedures and control occasioned by those changes, the fiscal successes and concerns which have arisen in this quarter, and highlight some of the control inquiries our Office will examine in the 3rd Quarter. Our Office is pleased to present this Report to the people of Ulster County and their representative government officials. II. CHARTER CHANGES: PROGRESS & PROCESS A. Transition Report: By the end of the 1st Quarter, our Office had worked with the County Executives Office and the Department of Finance to modify procedures and forms in a manner consistent with the reorganization of the duties of the Comptrollers Office and the Finance Department as set forth in the revised Charter. Most notably, the Finance Department and the other administrative units of County government, which regularly submit claims for payment, had put into use new forms and procedures prescribed by our Office and adopted by the County Executive as part of the Countys Standard Operating procedures (SOP). These forms help to ensure proper controls on the progress of any claim from its submission by a vendor, to its review by the relevant department, to its approval by the Department of Finance, through its certification for payment by our Office. Adjustments will continue to be made as necessary, but the transition has already resulted in a solid system of controls which comports with the requirements of the Charter and sound fiscal oversight, as is our primary charge. B. The Forms & Methods of Accounting: In the 1st Quarter, we noted the need for the incorporation of language into the County Executives Standard SOP reflecting the new forms and procedures referenced immediately above. We are advised by the County Executives Office that these forms have been implemented as part of the SOP and are in use by the administrative units. With respect to accounting practices, our primary area of concern in the 2nd Quarter and going forward into the 3rd, is with the management of County bank accounts, which is discussed in greater detail under Section III.B. Bank Reconciliations and Collateral. III. CLAIMS AUDIT AND ACCOUNTING OVERSIGHT A. The Claims Audit Process: One of the most essential duties of the Comptrollers Office is the audit and certification of all claims and charges against the County. During the 2nd Quarter of 2013, our claims auditing team 1|Page

2013 2nd Quarter In Review August 19, 2013 audited 6,181 claims consisting of over 13,267 individual transactions. These claims/transactions amounted to approximately $31 million for all County administrative units. Additionally, our audit obligations require reviewing all employee reimbursements, which included 484 reimbursements amounting to approximately $67,500. As claims are examined in our Office, our team of claims auditors confirm that each claim is supported by the documentation appropriate to the nature of the claim. Where deficiencies or a lack of clarity in the claim require further due diligence, the issue is noted in our records as a claims audit Issue. Vendor Claims: Table #1 summarizes the Issues we identified during the 2nd Quarter of 2013, and details the amount of audited claims along with a summary of our identified issues for each quarter of 2013.

Table #1 : Issues with Vendor Claims For the 1st and 2nd Quarters of 2013 1st Quarter 2013 Total Dollar Value of Claims Total No. of Vendor Claims Total No. of Issues Identified Percentage of Issues Compared to Claims Total Dollar Value of Invoices with Issues Total Dollar Value of the Complete Claims with Issues Total Dollar Value by Which Claims Were Reduced No. of Issues 86 58 34 28 26 * * * % of Issues to Total Issues 37% 25% 15% 12% 11% $ 57,942,210 6,559 232 4%

2nd Quarter 2013 $ 31,283,191 6,181 137 2% $ $ $ 630,095 1,052,473 (11,935)

Summary of Issues Identified Data Entry Issues at Time of Invoicing Missing Documentation Other Contract/Bid Issues Missing Finance's Required Signature

No. of Issues 57 30 14 17 19

% of Issues to Total Issues 42% 22% 10% 12% 14%

* Our Office began tracking this data in the 2nd Quarter of 2013. As indicated above, there has been a significant improvement over the 1st Quarter of 2013, as there are 2% fewer Issues this quarter compared to last quarter. First, we note that our claims auditors identification of Issues resulted in a direct savings to the County of $11,935. Further, we are confident that the adaptation of the administrative units to the new procedures prescribed by our Office and supported by the Executives Office during the 4th Quarter of 2012 and the 1st Quarter of 2013 improved performance in this important area of fiscal management. The Finance Department and all County administrative units should be credited with this reduction, and we are hopeful it marks the beginning of a consistent downward trend in claims audit Issues. 2|Page

2013 2nd Quarter In Review August 19, 2013 Employee Reimbursements: Table #2 below summarizes the Issues encountered with employee reimbursements where problems were uncovered on 5% of the submitted vouchers. The Issue of greatest concern was mileage discrepancies. As shown, 53% of the Issues were related to inconsistencies in the amount of miles reported for a trip on the statement of travel expense sheet by the employee as compared to what MapQuest calculates the mileage to be for that particular trip. This concern led us to carry out an investigation into mileage reimbursements and we expect to issue a report on this issue during the 3rd Quarter of 2013.

Table #2 : Issues with Employee Reimbursement Claims for 1st and 2nd Quarters of 2013 1st Quarter 2013 2nd Quarter 2013 Total Dollar Value of Reimbursements Total No. of Employee Reimbursements Total No. of Issues Identified Percentage of Issues Compared to Claims No. of Issues 7 7 6 3 5 $ 54,113 439 28 6% % of Issues to Total Issues 25% 25% 21% 11% 18% No. of Issues 1 4 12 5 1 $ 67,524 484 23 5% % of Issues to Total Issues 4% 17% 53% 22% 4%

Summary of Issues Identified Conference/Notary Public Related Issues Insufficient Address Information Mileage Discrepancies Other No Documentation of Payment

B. Bank Account Reconciliations & Collateral: Article IX, C-57 (B) tasks our Office with the bank reconciliation oversight for approximately fifty Ulster County bank accounts affiliated with seven independent financial institutions. In performance of the bank reconciliations, we identified concerns as to the number and management of bank accounts held by the County, as well as the method and timetable of accounting for and booking certain transactions. We have made our concerns known to the Executives Office and to the Finance Department and continue to encourage modifications in County accounting practices to be in accordance with best practices. In order to support our recommendations, we are undertaking analyses in the 3rd and 4th Quarters of 2013 which we trust will clearly identify the benefits of adoption of such practices. In any event, our Office performed the bank reconciliations for the 2nd Quarter in accordance with its present charge under the Charter, and an analysis is contained herein below. Also, attached as Appendix A is a schedule of concerns noted by our Office with respect to the bank accounts and the maintenance thereof. 3|Page

2013 2nd Quarter In Review August 19, 2013 As of May 31, 2013* the reconciliation process reveals the combined cash position of the County to be as follows:

Table #3: Combined Bank Reconciliation as of May 31, 2013* Total Bank Balance as of May 31, 2013 Plus: Deposits in Transit Less: Outstanding Checks Unreconciled Differences Book Balance as of May 31, 2013 $ $ 103,052,816 391,488 (4,779,664) 259 98,664,899

*The reason for including May balances as opposed to the more updated June 30th balances is that as of June 30, 2013 (the close of the 2nd Quarter, our Office had not received the the necessary documentation from the Finance Department. C. Accounting Concerns and the Prescribing of Best Practices: The law and the County Charter (ie., Charter Sec. C-57(C) & (E)) confer upon our Office the authority and duty to prescribe [not merely to recommend] generally accepted government accounting methods for all units of County government, and to prescribe [not merely to recommend] the form for records of appropriation, encumbrances, and expenditures for all units of County government, receipts, vouchers, bills and claims... [inserted text added]. While we view this delegation of authority as clear and unequivocal, we are neither an administrative supervisory body (as is the Executives Office), nor a legislative policymaking body (as is the County Legislature), and thus, the success of our efforts to prescribe such accounting methods and forms is necessarily impacted by the level of administrative support such prescriptions receive. We therefore regularly engage the Executives Office and the Finance Department with recommendations as to best accounting practices for decreasing the risk of fraud, waste, and inefficiency. In this section, we detail best practice recommendations and accounting issues which have been identified in this Quarter. We are hopeful that these practices will be adopted by the administration and the Commisioner of Finance. The issues are highlighted here and discussed in further detail in Appendix A. Our Office does not receive copies of all bank statements of County accounts as a matter of course, as required by County Law Sec. 577(1)(e). There are several accounts open which have little or no account activity over an extended period of time, which may result in the accounts actually costing the County money. We will be performing a bank fee review during 2013 to establish whether this is the case. 4|Page

2013 2nd Quarter In Review August 19, 2013 Some funds held in separate accounts may not need to be held in this manner, reducing expense and administrative effort with respect to management of these funds. We have requested supporting documentation for the need for such separation from Finance. Some entries in the County books are made, in our view, outside of the time period in which they should be entered according to best accounting practices. Some significantly aged outstanding checks should be voided and reissued or turned over to the NYS Comptrollers Office as unclaimed funds so that the accounts can be properly reconciled. Our Office is not consistently, or in a timely manner, provided with records of collateral statements from County banks and the Finance Department. Early in the 1st Quarter we recommended the adoption of a form for use by all administrative units in connection with the opening of any new bank account. The practice would allow our Office (and Finance and the Executives Office) to consider whether the bank account proposed to be opened was being opened for a valid purpose, in the proper type of financial institution, and as the proper type of account. Doing so at the time of opening the account would avoid unnecessary administrative effort and cost to the County and its taxpayers in connection with after-the-fact reconciliations, and decrease the risk of fraud and waste. For instance, an account opened without knowledge of the Finance Department and/or our Office, runs the high risk of being undercollateralized or uncollateralized. As of the closing date of the preparation of this report, the form had not been implemented. We continue to urge its adoption and use. IV. REPORTS ISSUED BY COMPTROLLERS OFFICE Summary of Reports: Following is a summary of the reports issued by this Office in the 2nd Quarter. 1. Take-Home Vehicles Release Date April 4, 2013 This report reviewed the procedures and policies related to the use of authorized County Take-Home vehicles by various administrative units of the County. Our report revealed that these vehicles cost the County approximately $369,000 in commuting costs. The report also revealed numerous deficiencies in record keeping and recording for the uses of these vehicles, which if improved, could potentially save taxpayer money. The deficiencies noted were: Inconsistencies between Fleet Management inventory and the take-home vehicle listing when compared to the Administrative Units lists. Incomplete files maintained by the Fleet Management. Inconsistencies with Vehicle Request forms and incomplete mileage logs maintained by authorized drivers which include the breakdown of miles by category of emergency call outs, business related mileage, and commuting miles. 5|Page

2013 2nd Quarter In Review August 19, 2013 Vehicles assigned as take-home did not meet the criteria per County SOP. An overall lack of understanding of the authority of the Countys SOP in regard to its application to all County administrative units, which led to a lack of compliance. 2. 2012-2013 School District Real Property Tax Collections Release Date April 9, 2013 This By the Numbers report informed the public of the implications for Ulster County of taxpayers failing to pay their school taxes. This report pointed out the following: Ulster County School Districts levied over $341 million in taxes for the 2012-2013 tax year. Taxable properties in school districts that go unpaid become a liability and the responsibility of Ulster County to make whole the outstanding tax warrant. For the 2012-2013 Fiscal Year, Ulster County had to pay $22,810,793 to school districts located in the County, for taxes that went unpaid. The three largest School Districts which had the greatest uncollected property tax liens, were Rondout Valley, Saugerties Central Schools, and Onteora Central, totaling $2,692,407, $2,559,039, and $2,204,337, respectively. 3. Review of Ulster County Procurement Card Procedures Release Date April 11, 2013 This report focused on an analysis of 357 procurement (credit) card purchases (P-Card) totaling $89,392, and determined whether these purchases were in compliance with Section I of the current SOP. Our findings from this report indicated that most card-holders and supervisors followed procedures. However, some transactions lacked adequate supporting documentation. Our findings are listed below: Identified 25 instances where the County was charged sales tax in connection with PCard purchases, a charge to which Ulster County is not subject as a tax-exempt entity. Seven transactions lacked detailed receipts as required by the SOP. This lack of information makes it impossible to determine the quantity, per unit cost, or detail and/or reason for the transaction. Good internal controls require these items in order to justify and substantiate a purchase. There were instances of missing documents as required by the SOP to substantiate authorization and issuance of a P-Card to the card-holder, as well as detail the terms, conditions, and responsibilities of holding the card. Inconsistencies in the language within the SOP again are a concern that should be reviewed and or amended to reflect changes in County practices. 4. 2013 County Foreclosure Auction: Properties Up Unpaid Taxes Down Release Date April 1, 2013 This By the Numbers report focused on the properties that were up for public auction on April 16, 2013 as a result of having three or more years of unpaid real property taxes. This report denotes the following: 211 properties were up for public auction totaling $3,681,195 in outstanding property taxes. All Ulster County municipalities had properties up for auction with the exception of the Towns of Denning and Hardenburgh and the Village of New Paltz. 6|Page

2013 2nd Quarter In Review August 19, 2013 The Towns of Saugerties and Ulster had the greatest number of properties up for auction, together totaling 62 properties. However, the largest dollar amount of outstanding taxes, equivalent to $1,431,693, was attributable to the Town of Saugerties and Village of Ellenville, with a total of 43 parcels with outstanding taxes. However, this amount included 6 properties that were least likely to sell in the Village of Ellenville and the Town of Saugerties, due to their hazardous nature, which totaled $892,364 in outstanding property taxes. The taxable amounts outstanding between years 2012 and 2013 showed a 6% decline at the time of the public auction notice. However, since 2010, the number of unredeemed parcels has increased 8%. 5. First Quarter 2013 Report Release Date May 1, 2013 This report highlighted the challenges facing the Countys financial oversight and the impact of the charter changes on the County government during the 1st Quarter of 2013. The report focused on the following: Our Offices efforts to comply with the newly adopted Charter change segregating our duties and charging the Comptroller as the Countys Chief Auditing Officer, while delegating the accounting function responsibilities to the Commissioner of Finance as the Chief Accounting Officer. Issues which arose during the claims audit process as a result of the Charter change were highlighted in five areas; data entry errors at time of invoicing, missing documentation, contract/bid issues, missing required signatures from Finance Department personnel, and other issues, totaling 232 issues out of 6,559 claims audited. Questions regarding the processing of 439 employee reimbursements during the first quarter in which 28 reimbursement claims contained inaccuracies related to conference/notary public reimbursements, insufficient address and incorrect mileage verification, no documentation of payment, and other issues. These are concerns that are not only important from a completeness standpoint, but are also essential in verifying the correct calculation for employee reimbursements. Inaccuracies in Bank Account Reconciliations and Collateral. Our Office has made and still maintains the strong recommendation that the bank reconciliation function be reassigned to the Chief Accounting Officer so as to comply with pronounced accounting standards. Reconciling the books does not allow our Office the independence necessary. In addition to this recommendation, our Office found that the Bank Book had an unreconciled difference of $1,763,566 as of February 28, 2013. It also pointed out the untimely receipt from the Finance Department of the necessary documentation to perform the bank reconciliations within a timely manner. 6. Ulster County DSS Review of Child Care and Development Block Grant Release Date May 13, 2013 This report examined the New York State Child Care Block Grant (NYSCCBG) for low income families that meet certain requirements established by NYS and are eligible for day care assistance. This report uncovered some inaccuracies in the manual calculations necessary to approve provider billings on a monthly basis and other performance issues which led to inaccuracies in payments. Many of the findings are rooted in systemic and functional limitations of the state program itself and the technology available to the relatively 7|Page

2013 2nd Quarter In Review August 19, 2013 small County workforce charged with managing the program at the County level. The Department of Social services was extremely cooperative during the review and has been very proactive in its response to issues raised in the report since its release. V. COMPTROLLERS 3rd QUARTER In the 3rd Quarter, the Comptrollers Office has either released or intends to release the following reports: Vehicle Accident Report Release Date July 11, 2013 This By the Numbers report reviewed the number of reported accidents and the costs associated with those accidents for the 2012 calendar year. The report pointed out that 65 County vehicles were involved in a total of 79 accidents that resulted in damages ranging from superficial scratches to accidents in which cars were totaled. The overall cost of these equaled $136,785 for 2012. Ulster County Non-Property Tax and Fee Revenue An Economic Indicator Report which will disclose the revenues generated through three categories of nonproperty taxes paid to Ulster County for 2012. The report will also highlight revenue generated from these sources for the first quarter of 2013. Sales taxes, deed and mortgage taxes, license and permit fee revenue generated $124,536,577 for 2012. Additionally, this report highlights the first quarter of 2013s revenues generated which total $29,651,499. Mileage Reimbursement Report This is another By the Numbers report, which will review the costs associated with reimbursing County employees for the business use of their personal vehicle as well as for other reimbursable expenses such as travel, meals both taxable and non-taxable as well as other miscellaneous reimbursements. The County reimbursed $269,168 to its employees during 2012. Eighty percent of this amount was for reimbursable mileage costs associated with the employee utilizing their personal vehicle for County business, an expense which is discussed as avoidable had the employees utilized a County owned pooled vehicle instead. Inmate Account Report Inmates within the Jail may have inmate accounts in which they can purchase various items such as additional food, toiletries, religious books, and various other authorized items. These accounts are originated with the confiscation of cash on hand at time of incarceration and/or supplemented by relatives or friends through various sources. This report will provide information as to the effectiveness of the internal controls over this account and whether the transactions are recorded accurately and timely to the individual inmate accounts. Wholly Exempt Properties Report This By the Numbers report will focus on the 2,420 Ulster County properties which are entirely exempt from paying Real Property Taxes. Thus, shifting the approximate $62 million in forgiven tax revenue onto the individuals who are required to pay their share of property taxes.

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2013 2nd Quarter In Review August 19, 2013 Hotel/Motel Tax Report During 2012 the County collected over $1.1 million in Hotel/Motel tax. As a result of the County relying on information provided by owners of these hotels/motels we offered our assistance to the Department of Finance to conduct field visits of identified properties to verify that the information being supplied on their quarterly report filings are accurate. EZ Pass Report This report is in the preliminary fact gathering process and was initiated as we noticed there were fines being assessed to various Ulster County accounts. New York State EZ-Pass has been contacted, to obtain all transactions for 2011, 2012, and year-to-date 2013 information. The Comptrollers Office reserves the right to alter the audit and report plan for the third quarter in its discretion as the needs and priorities of the County change in relation to the discharge of our duties. VI. TRANSPARENCY & ACCESS A. Your Eyes on Ulster: The Ulster County Comptrollers Office has endeavored to make the work of the Office and of County government as a whole, as transparent and accessible as possible. We have adopted the practice of posting all reports and opinions of the Office online, and expect to unveil an updated and more accessible web and social media platform during the 3rd Quarter. Our goal is to ensure that Ulster County citizens have the greatest possible access to the state of the Countys economic position at all times, as well as removing any veil over the operation of government and its ethical oversight. B. Community Involvement: Our Office continues to act as a resource for municipal government officials and taxpayers seeking answers to questions which arise in their communities, either researching and providing responses directly or directing them to the appropriate branch of County government. There is an unfettered open-door policy governing our Offices response to constituent concerns which we believe fosters trust in the Countys operation. Further, we support an active and extremely productive internship program which has benefitted the County and the interns themselves by tapping into the tremendous wealth of talent in the Hudson Valleys higher education institutions. Interns in our office participate in a meaningful way in our reports and investigations. In the 2nd Quarter we were proud to recognize another extraordinary collection of local high school students as part of our Recognizing Success program, which seeks out and rewards Ulster County high school students who show exceptional entrepreneurial spirit and demonstrated economic or social leadership achievement. We continue to be encouraged and edified by the wealth of talent and energy produced in our schools and by our hard-working Ulster families. 9|Page

2013 2nd Quarter In Review August 19, 2013 C. Professional Development & Education: We are also pleased to report that we continue to take seriously our obligation to the People of Ulster County by ensuring that our professional staff remains current in its knowledge of the field of government finance, accounting, and auditing. Several members of our Offices staff attended the 34th Annual Conference hosted by the NYS Government Finance Officers Association, where best practice solutions were presented and many other topics of concern were addressed by members of government with exceptional experience. Also in the 2nd Quarter, Deputy Comptroller Joseph P. Eriole, Esq. was invited to speak at the Government Finance Officers National Convention in early June, on the subject of inter-agency cooperation and problem-solving. Two of our staff members, Kristin Jackson and Elizabeth Weredyk, graduated from the Ulster County Regional Chamber of Commerces Leadership Development Institute in mid-June 2013. The Office also announced its membership in the Association of Local Government Auditors (ALGA) and its participation in ALGAs Peer Review Program in the 2nd Quarter. Two staff members, Director of Internal Audit and Control, Ronald E. Clum, CPA, and Senior Auditor Elizabeth Weredyk, participated in ALGAs Peer Review Workshop, and joined government auditors from around the nation as a prerequisite for becoming a team member on the ALGA Peer Review Team. ALGA has developed the Peer Review Program to assist local government audit organizations in meeting the professions peer review requirements, while keeping costs to those local governments down. Government Auditing Standards, promulgated by the U.S. Government Accountability Office, establishes professional standards for conducting audits in government. Those standards require audit organizations to receive an external peer review at least once every three years. The objective of a peer review is to determine whether an audit organizations quality control system is suitably designed and is in place and operating effectively. A peer review also provides assurance that an audit organization is following its established policies and procedures and applicable auditing standards, the same measures we as auditors hold everyone else to. Qualified members of ALGA can be peer reviewed by other ALGA entities at significantly reduced costs to ensure their continued adherence to best practice. ALGA members are also qualified to conduct peer reviews of other government entities, an experience which broadens the reviewing entitys exposure to innovative practices in government finance and efficiencies throughout the nation. VII. CONCLUSION Your Office of the County Comptroller continues to oversee the efficiency, fiscal responsibility and transparency of County government with the highest regard for the duties with which it is charged and the trust the People of Ulster have placed in us to do so. Our review of the 2nd Quarter of 2013 indicates a continued commitment by County administrative units to the same goals.

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APPENDIX A

2013 2nd Quarter In Review August 19, 2013

APPENDIX A Schedule of Bank Reconciliation Issues

Below is a listing of items which our Office has advised the Executives Office and the Department of Finance of areas where accounting forms, records and methods may be improved. 1) There are four County bank accounts that had little or no activity conducted during the current year. Although we realize that there are instances where certain Federal or State funds are required to be segregated, that does not necessarily mean that separate bank accounts need to be maintained. Inactive accounts lead to additional unnecessary resource allocation, oversight, and fees to the County, and can be a source of increased risk for fraud or waste. 2) There were two separate bank accounts set up for Housing and Urban Development (HUD) funds. We question the need for this, in that it results in duplicative allocation of resources, oversight, and fees to the County, and can be a source of increased risk for fraud or waste. 3) There were some accounts that had old outstanding checks (checks issued that were either lost by the vendor/employee or were never cashed as of the end of the month) that went back as far as 2007. The disbursement account and payroll accounts had old outstanding checks of $15,011.15 and $10,495.39, respectively. It is our opinion that the County should try to contact these payees in a last good faith effort to resolve the matter, and all unreachable payees should have these amounts turned over to Unclaimed Funds maintained by the New York State Comptrollers Office. If there are specific reasons why these funds cannot be turned over to unclaimed funds, legal support for that position is requested. 4) We raised concerns as to why the outstanding check list prepared by the bank did not agree to the outstanding check list prepared by the Countys financial system. Although there can be an explanation for such discrepancies, our concern is that the County pays approximately $3,000 per year for these bank generated reports, and if they are not useful due to some deficiency in the Countys ability to reconcile them, then they should be discontinued or those County deficiencies aggressively addressed. 5) Upon looking into the outstanding payroll checks, we discovered a number of employees holding on to payroll checks for a number of months before cashing them. We brought our concerns to the Executives Office and the Finance Department and asked them to consider making it a requirement that employees receive automatic deposit, which the County currently provides as an optional service. Direct deposit is a more cost-effective manner of payroll processing, especially with such a large workforce. We are informed by Finance that the County cannot force anyone to require electronic deposit, a position which we have asked to have verified. Even if this is the case, the direct deposit option can be more aggressively 1|Page

2013 2nd Quarter In Review August 19, 2013 offered and implemented, and/or the limitations, if any, in our ability to mandate it can be worked around by the adoption of a policy allowing for opting out, rather than the present system, which makes hard checks the rule and direct deposit the exception. 6) We have recommended that any County bank account which any administrative unit of County government seeks to open be vetted by the filling out of a standard form for review by the Finance Department and our Office, which would make clear the purpose of the account, the need for a separate and individual account for that purpose, who the proper signatories are, and allow for determination that it is covered under the Countys collateral agreements. This issue was first raised back in January 2013 when our Office identified an account which was opened in a bank not authorized by General Municipal Law or without the Countys knowledge. 7) Currently we are aware of a DSS Guardian Trust Account to which we are not being provided any statements, reconciliations, or any other information in connection with it, even though we are tasked with the responsibility of reconciling bank accounts. We are working in good faith with DSS Commissioner and the County Attorneys Office to ensure that the information necessary to reconcile this account can be provided to our Office without putting confidential information at risk.

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