The oft-repeated call by the Board of Legislators’ minority leader for the county hire an internal auditor surfaced again this week during the 2010 budget review.
"Why aren’t you a strong advocate for an internal auditor," asked Michael J. Hennessy, D-2, Sherrill, when Comptroller Joseph J. Timpano appeared before the Ways & Means Committee Tuesday to answer questions about his department’s proposed budget for next year. Hennessy argues that adding an auditor to Timpano’s staff would help protect the county against fraud and inefficiencies.
"That’s not entirely true," replied Timpano and a discussion ensued among the comptroller, Hennessy and other committee members.
County Executive Anthony J. Picente Jr.’s $360 million spending plan does not add an auditor’s post to Timpano’s staff. The county does not currently have an internal auditor. Hennessy said county government is large enough to justify a financial watchdog.
"I firmly believe there’s fraud running wild in Social Services," Hennessy said.
His comment about Social Services came after he said the county’s 2008 outside audit disclosed problems in how some Social Services cases were processed. He cited such things as clients’ Social Security numbers and addresses not being verified, as required by the federal government.
"Most of those are what I call clerical errors," said Timpano, saying they did not present a financial liability.
As he has several times in recent weeks, Hennessy urged the county to begin using software to track Medicaid data. The program is supposed to help Medicaid officials identify opportunities for cost savings, operational efficiency and detect questionable activity. He said other counties in New York "are bragging about this software."
The county has had discussions with the maker of the software.
Timpano said county departments verify payroll and contracts with outside agencies. Additionally, he said there are computer software controls and manual controls in place, and the annual audit by an outside accounting firm, to help uncover problem areas. The audit contains a management letter, whose purpose is to point out particular concerns. No material weaknesses were identified in the 2008 audit.
Also, the comptroller said outside agencies that contract with the county are required to submit their annual audits to the county.
He said his department issued more than 100,000 checks a year.
"No," was Timpano’s response when Majority Leader David J. Wood, R-28, Rome, asked if there is anyone already on Timpano’s staff who could do audit work.
The comptroller later added, "If we were to go that route, I would like someone with CPA and government experience."
Wood said "it would be a gamble on our part" whether adding the expense of an auditor would pay off in savings elsewhere.
"An extra person could probably visit some of the agencies that we do business with," he said, later adding, "I’ve always felt uneasy with our contracts."
An audit by the state of the county’s financial records from Jan. 1, 2006, to Sept. 30, 2007, uncovered unauthorized overtime payments of nearly $20,000. The overtime payments were blamed on a software problem that was later corrected.
The audit was requested by Hennessy and took about a year to complete.
Legislator Patricia A. Hudak, D-29, Rome, said human error is more common than intentional fraud.
"I kept books, and I do believe people make mistakes," she said.
Ways & Means Chairman Les Porter, R-6, Remsen, cautioned that there need to be specifics about the cost of an auditor’s position and whether it is feasible.
Among other topics raised with Timpano was his opinion the 2010 spending proposal.
"I think it is a good budget," he said. "I think they did a good job. I think it is reasonable."
