State Comptroller Calls on Mt. Kisco for Greater Fiscal Transparency
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A recent state comptroller’s report for the Village of Mount Kisco criticized officials for failing to provide timely annual audits, publicly report the municipality’s finances and filing financial reports with the state.
However, in a response to the comptroller’s office, Village Manager Ed Brancati pushed back on two of those points, providing documentation that Mount Kisco has had an independent third-party auditor examine its finances and that it’s presented at a public meeting and available online.
Mount Kisco was one of 30 villages selected statewide to be included in the Transparency of Fiscal Activities report that was conducted to audit the municipalities from June 1, 2022, through Oct. 1, 2023. The report was made public by mid-December.
Fiscal years in Mount Kisco and most other villages throughout the state begin June 1.
“Although our review did not identify any significant fiscal concerns with the Village’s general fund for the fiscal year 2022-23, the Board’s ineffective oversight resulted in a lack of transparency with the public regarding the condition of the (chief financial officer’s) records and the Village’s fiscal activities,” the comptroller’s report stated. “As a result, taxpayers and interested parties could not assess the Village’s financial operations to make informed decisions.”
It took the village to task for not having its audit completed for the fiscal year ending May 31, 2023, until this past February and not presented to the Village Board until March.
“As a result, the Board did not fulfill its responsibility to ensure the annual audit was performed in a timely manner,” the report also stated.
In Mount Kisco’s favor, the comptroller’s office found that it was one of only two of the 30 audited villages that conducts an annual examination of its finances.
Brancati pointed out that the village contracts with an outside vendor to perform an audit every year. Reports dating back to 2009-10 can be found on the village’s website, including for the 2022-23 fiscal year, which was handled by the certified public accounting firm Drescher & Malecki and comprised most of the time period studied by the comptroller.
Brancati said once the fiscal year concludes on May 31, it generally takes six to eight weeks after that date for the municipality to receive and pay claims that happened late in the fiscal year. It then takes another six to eight weeks for Finance Department staff to prepare the documentation for its auditors to do their job.
In his response to the state, Brancati said the 2022-23 was later than usual because of delays caused by “a transformational election” in November 2023, which saw the mayor’s seat and both trustees’ positions that were up for election change hands.
“Typically, we have our audit completed sooner than what occurred for fiscal years 2022-2023,” Brancati stated. “At the same time, I have spoken with Finance Department staff and our independent auditor and we will be taking measures to accelerate the timing of our audit to get it done sooner.”
Brancati said the village always has its auditor attend a regular board meeting to present its findings after the audit has been completed and has it posted on the village’s website. He said that it would be difficult for the village to be more transparent.
“I can’t go around to every resident and give a presentation in person,” Brancati said last week. “It’s here if you want it. We’re not hiding anything.”
He added that there are no legal requirements for a village’s audit to be completed and presented by a certain date. If the comptroller would like a hard deadline, it can lobby the state lawmakers to introduce and enact legislation.
Brancati acknowledged that the village has failed to file an Annual Financial Report (AFR) for fiscal years ending in 2021, 2022 and 2023. Since the comptroller’s report, Mount Kisco has filed the 2020-21 AFR, which was approved, and has submitted the 2021-22 AFR to the state.
Once the latter AFR is approved, the village will submit the 2022-23 report and is now working with its auditor on 2023-24.
“While the Village recognizes the challenges mentioned by the Treasurer, there is no excuse for failing to submit these reports, particularly once the independent audit for each year had been completed,” Brancati wrote to the state in his response. “The Village will be taking the necessary corrective actions to address this issue and ensure it does not happen in the future.”
The comptroller asks that villages with a population of between 5,000 and 20,000 have their AFRs submitted within 90 days of a fiscal year’s completion. Mount Kisco has roughly 11,000 residents.
The comptroller’s report provided a series of seven recommendations for the village to follow so that it can improve financial transparency. It acknowledged that the village generally agreed with the recommendations and is taking corrective action.
Recommendations include conducting an annual audit; ensuring an AFR is prepared and filed; notifying the public the AFR is available and posted to the village’s website; attending applicable and beneficial training sessions to obtain a better understanding of its duties; have the village treasurer provide the Village Board and the village manager with timely financial reports; and ensure a periodic physical inventory of Mount Kisco’s capital assets is taken and compared to the accounting records.
Martin has more than 30 years experience covering local news in Westchester and Putnam counties, including a frequent focus on zoning and planning issues. He has been editor-in-chief of The Examiner since its inception in 2007. Read more from Martin’s editor-author bio here. Read Martin’s archived work here: https://www.theexaminernews.com/author/martin-wilbur2007/
