The Peru Gazette

Posted on October 18, 2008 and updated October 20. 2008 by John T. Ryan

The Peru Town Board’s first meeting for the month of October was held on Thursday, October 16th because Columbus Day fell on the board’s normal second Monday meeting night. These are the most significant events of the meeting in the order they occurred:

• Ron Allen reported on behalf of Adele Douglas regarding a November 10th Open House regarding the proposed “Little Au Sable River Trail.” The Open House will be held downstairs in the Town Hall from 4 p.m. to 7 p.m.

• Several residents including Ron Allen complained about the road shoulder material the New York State Department of Transportation (D.O.T.) laid down on the Route 22 road shoulder from the area of Liberty’s Service Station southward. They said the material is easily scattered on the highway resulting in a safety hazard and an unsightly condition. People said they had witnessed bicycles and motorcycles overturning after sliding on the substance. The Board requested that Town Supervisor Donald Covel write to the D.O.T. advising them of the situation.

• Peru residents Ron LaMountain and Bob Millett voiced strident complaints about not being issued permits for their outdoor wood boilers. They said they had applied for building permits during a period in late July when the outdoor wood boiler moratorium had lapsed. Town Attorney Donald Biggs and Code Enforcement Officer Paul Blaine explained that while the moratorium may have lapsed for a few days a new moratorium was enacted in early August that prohibited Blaine from issuing any boiler permits. Millett also complained the recently enacted outdoor wood boiler law’s spark arrester requirement would require much more boiler cleaning and maintenance.

• Resident Craig Schmitt asked if the town has implemented the New York State Comptroller’s 2007 audit recommendations. Counselor Tom Powers outlined several changes that had been implemented in accordance with the audit recommendations. Supervisor Covel agreed to meet with Mr. Schmidt on Friday, October17 to go over the Comptroller’s recommendations and the town’s responses. (Please note – This NYS audit was requested by the Peru Town Board. A summary of the audit results appears at the bottom of this page. The entire audit findings can be found at this Internet site).

• The Supervisor’s published meeting agenda stated that amendments to the outdoor wood boiler law would be discussed at this meeting. Town Attorney Donald Biggs said he was still waiting for proposed changes from board members, therefore, there was no discussion.

• Resident Cal Mitchell and his daughter-in-law Mrs. Scott Mitchell approached the board regarding the possible purchase of town property bordering Mr. Mitchell’s property. The Mitchell property is adjacent to Sullivan Park. The Mitchell’s would like to construct a residence on the site. Discussions will continue.

• Supervisor Covel reported that several Clinton County towns are concerned about the rate Clinton County has proposed to reimburse the towns for plowing Clinton County roads. Negotiations are continuing.

• The Board approved contracts with North Country Life Flight and Clinton County Assessment Services. The town donates $500 each year to North Country Life Flight for its services. Clinton County Assessment Services increased its fee from $34,000 in 2008 to approximately $40,000 in 2009.

• Supervisor Covel reported that he has been able to deposit $484,000 Water and Sewer Department project monies in a 30-day certificate of deposit at an interest rate of 2.857%. This is money the town borrowed at 2.6%, however, it will not be needed until early 2009. This money is a portion of a $1.2 million loan.

• The Board received a letter from retired town employee Nancy Long regarding retiree contributions to health insurance. Long believes that changes were made in the Employee Benefit Package in early 2008 without employee notification. Her letter concluded, “Making such decisions in the budget workshops and then including these changes in the benefit statement that they are not given copies of only shows that “open government” does not exist in Peru!”

• In its final action before entering into Executive Session for a personnel matter, the Board set the dates for future budget workshops. They will be held:
October 20th at 6:30 p.m.
October 23rd at 6:30 p.m.
October 29th at 6:30 p.m.

The Board hopes to schedule a public hearing on the preliminary 2009 budget at its October 27th regular meeting.

End of Meeting Report

NYS Comptroller’s Audit Summary

Scope and Objective
The objective of the audit was to examine financial records and reports of the Town of Peru for the
period January 1, 2005 to November 5, 2006. The audit addressed the following questions:
• Had the Supervisor developed and implemented management procedures that allow the Board
to adequately monitor the Town’s financial activity?
• Did the Board fulfill its oversight responsibilities relating to internal controls over claims
processing?
• Were there adequate internal controls over the Code Enforcement Officer’s cash receipts?

Audit Results
The Supervisor did not maintain adequate management procedures for the Town’s financial operations
and employed bookkeepers having little, if any, experience in governmental accounting. The Supervisor and administrative staff did not maintain current and accurate records and did not provide any monthly financial reports to the Board during 2006. Bank reconciliations were not completed and the Town’s general ledger cash accounts were overstated by $441,643 as of December 31, 2006. Both the current and prior Supervisors failed to maintain adequate documentation for moneys received, making it unclear whether all cash receipts were accurately identified by source and properly recorded. Acceptable accounting records were not maintained for the Town’s capital projects and capital reserve transactions. Overall, the Board did not fulfill its financial oversight duties by performing an annual audit of the books and records of all officers and employees who received or disbursed cash. Because of the lack of adequate controls, accountability, and financial oversight by Town officials, the Town Board is at risk of making misinformed financial decisions that could result in serious fiscal problems and the waste of taxpayer moneys.

The Town’s internal controls over the claims processing system were also inadequate. Claims processing
duties were poorly segregated, the Board did not properly audit claims, and some warrants of audited
claims were missing or inaccurate. The Town had insufficient documentation available for our review
to support payment of legal fees totaling $37,704. As a result, there is an increased risk that errors or
irregularities could occur and not be detected and corrected in a timely manner.

Finally, the Board had not established written policies and procedures for the collection, recording,
reporting, and remittance of fees for planning, zoning, and building permits. The Code Enforcement
Officer (CEO) employed during 2005 did not maintain complete and accurate records, and the Town
had no method of verifying the receipts he collected against the reports he submitted to the Town Clerk
(Clerk). Without written policies and procedures for the management of code enforcement moneys,
the Town is at risk of revenues being lost or stolen without detection.