Community Corner

Comptroller: Smithtown Library District Lax in Controls, Overpaid Staff

Overpayments to employees, improper use of vacation time and unlocked safes found in audit conducted by the state.

Weak and sometimes non-existent internal controls at the have resulted in discrepancies, inaccuracies and overpayments to library employees, putting the library at unnecessary risk to lose money, according to an audit conducted by the state comptroller.

The audit, which reviewed library operations between Jan. 1, 2008 and Oct.  31, 2009, found the library overpaid employees more than $9,000 because of incorrect separation payment calculations and another employee received leave time without board authorization, resulting in the library paying $11,000 in unauthorized expenses.

A part-time custodial worker who retired in July of 2009 received a separation payment of $30,032, which included payment for 109 days of accumulated sick time instead of the stipulated 60 day maximum. As a result, the employee received $8,740 more than he was entitled to.

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Vacation leave balances were overstated for five of nine employees reviewed resulting in unused vacation leaves that were improperly carried over to the succeeding year. The five employees with discrepancies were permitted to carry forward a total of 413 days of vacation leave accruals, which if converted into cash payments, would total $123,425.

A maintenance mechanic was permitted to accrue and carry-over to the following year 354 vacation days, 304 more than the maximum of 50 vacation days allowed.  The audit stated that although the accumulation of leave time was in excess of the amount authorized, it would not result in additional payments by the library because the contract does not provide for cash payments for accrued leave time during employment. However, it could result in additional leave days being used by employees, which could impact staffing.

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Auditors noted that failure to correct the lack of specific written policies related to accounting practices on leave accruals could lead to significant costs to the library down the road if balances are converted to cash payments.

The audit also found  improper internal controls as it related to purchasing and bidding.

Library officials did not obtain bids for purchases from six vendors totaling over $370,000 and did not comply with its procurement policy for purchases from four vendors totaling over $13,000. Proper bidding processes, according to auditors will result in the library obtaining the best prices for goods and services.

Check and balance systems were lacking in the receiving and payment of goods by the library, cash receipts and deposits. Safes at two locations were found unlocked and receipts for patrons who paid fines were only issued upon request at the Kings Park and Smithtown branches.

Other areas of concerns that were noted were employee access to computers and lack of a disaster recovery plan that would protect data in case of a disaster. The audit in its entirety can be found here.

Lusack responded to the report in a written letter to the comptrollers office saying in part that it was gratifying that the office found no indication of any intentional wrong doing or self-gain.

“Clearly the library will undertake those measures necessary to establish or supplement written policies and procedures relating to all facets of the fiscal, purchasing and information technology facets of the library’s operations,” said Lusack.

The library system has one main building and three branches, which together have 156 full- and part-time employees. The system is governed by a seven-member Board of Trustees with the day-to-day operations supervised by Library Director Robert Lusack who is appointed by the board. The library has a total of 156 full and part-time employees.

The board has 90 days to submit a written corrective action plan to the Comptroller’s office that addresses the findings of the audit.


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