The Hempstead Town Board did not adopt realistic and appropriate budgets for the 2017-2020 fiscal years nor did it effectively monitor the budgets, according to an audit released by state Comptroller Thomas DiNapoli.
During an audit period of 2017 to 2020, the state comptroller’s office sought to determine if the Town Board was adopting realistic budgets, among other things.
DiNapoli found that Hempstead officials “levied $37.6 million more in taxes than was necessary to fund budgeted expenditures” during the audit period for six major funds reviewed. In addition, the audit’s key findings say officials “failed to monitor the annual budget timely, resulting in the Board approving significant budget adjustments totaling $69.1 million between nine and eleven months after the year end.”
The findings were released in late February. Part of the recommended actions includes presenting future budgets in realistic and transparent manners, showing fund balance estimates and monitoring the budget while making necessary amendments, among others.
According to DiNapoli’s office, the seven-member Town Board is responsible for oversight of the town’s operations and finances. Supervisor Don Clavin is responsible for the budget’s implementation and Town Comptroller John Mastromarino is also responsible for monitoring it, according to the state.
Mastromarino disagreed with aspects of DiNapoli’s findings and called some of the analysis flawed.
“It is disingenuous in any analysis to pick and choose individual data that supports the assertion that there was a tax increase during the period under audit,” Mastromarino said in a statement regarding a chart that depicts summaries of fund balances. “We do not understand why your analysis excluded various Town funds and special districts. This would have correctly demonstrated the history of taxes levied during your audit period.”
Among the findings the town disagreed with was DiNapoli’s assertion that the budget was not effectively monitored by officials. According to Mastromarino, many budget items need to be paid to comply with deadlines and cannot wait for resolutions to pass.
“The Comptroller is in constant communication with Management concerning the status of the budget,” Mastromarino said. “Adjustments and accruals as required by the auditors are not made available in some cases until late in the subsequent budget year.”
DiNapoli’s office said, “Routine expenditures such as utilities, vehicle maintenance, and fuel should generally not be made without an available appropriation and should not wait until nine or more months after year end to be adjusted.”