The City of Buffalo's recent audit has been completed and Robert Dahill of McGee, Hearne & Paiz CPAs gave a report to the council at their meeting last week.
According to Dahill, the audit is a requirement for most state and Federal grants and loans, and this audit was required by the Federal Government for the more than $500,000 in grants awarded to the city for the water treatment plant project completed two years ago. Dahill explains what problems were found in the audit.
The internal control issue, according to Dahill, had to do with the size of the clerk's office and the small number of staff and problems that could possibly arise from such a small office processing financial statements.
Another issue pertains to banking institutions not securing adequate levels of collateral against the grant money deposited in their accounts, to protect public funds against a failure of the institution.
And finally, the third issue is a lack of a significant agreement between the city and the volunteer fire department. Dahill explains the problem.
Although the problems were significant, he said, and they do need to be corrected, Dahill gave the city recommendations on how to correct them to bring the city into compliance with state and Federal guidelines.