The Peru Gazette

By John T. Ryan

Town Supervisor Peter Glushko reported at the Town Board’s September 10, 2012 meeting that the Office of New York State Comptroller had published its Fiscal Oversight Report for the Town of Peru.

The State Comptroller’s audit was for the period January 1, 2011 – February 29, 2012. The Peru Gazette reviewed the audit, which was released on September 6, 2012.  The Comptroller found the Town of Peru deficient in several respects. It stated, “The Board and Supervisor have not provided effective oversight of the Town’s financial operations.” The report concluded that the Town’s incomplete and inaccurate accounting records resulted in it being impossible for the Town Board to monitor the financial condition of the Town’s operating funds and capital projects. Click here to review audit

This is not the first time the Town of Peru has been criticized by the New York State Comptroller. Similar findings were reported in the Comptroller’s 2007 Audit of the Town of Peru. Click here to review 2007 Audit

Supervisor Peter Glushko responded to the Comptroller in behalf of the Town Board in a letter dated August 27, 2012. Glushko cited a lack of stability in a key bookkeeping position; a new accounting program and uncertainty regarding the accuracy of financial data previously entered into a new accounting system as primary reasons for the situation.  He said several corrective steps have already been taken including stabilizing the bookkeeper’s position and implementing a training program. He also promised that a complete review of the Town’s operating and capital funds would be made and that they would be maintained in an accurate and timely manner. The Town Board must submit a corrective action plan to the NYS Comptroller within 90 days.

The major problems cited by the Comptroller included:

•             Incomplete accounting records and commingling of funds precluded the Board from being able to determine the amount of interfund advances that were made and need to be repaid. This situation also made it impossible for the account clerk to reconcile the Town’s bank accounts.
•             The Board failed to properly authorize, monitor, and oversee capital projects resulting in some projects being overspent and being funded by Town monies meant for other purposes.
•             Debt proceeds were been commingled with the Town’s operating fund, which resulted in debt proceeds being used for purposes other than for which the debt was issued.