MIDDLEPORT —
The Town of Royalton has been putting sales tax money in wrong funds for five years, according to the State Comptroller's Office which conducted an audit of the town from 2006-2011.
Revenue that was tabbed for the town, exclusive of the Village of Middleport, was going into the “A Fund” that included Middleport. That is, the village was getting some money that was allocated to the town.
The audit report said, “Because sales tax revenues were improperly allocated and interfund activity was improperly recorded, town residents were not treated equitably.”
Supervisor Jennifer Bieber, who succeeds Richard Lang as supervisor and took office on Tuesday, said the town board found the error and corrected it on October 2010.
“Since 2010, no sales tax money was put into the A fund of the budget,” she said.
The audit reported, “We found that town officials do not have a comprehensive understanding of financial management, especially concerning financial transactions.”
Bieber attended classes for newly elected town officials in Albany this week.
According to Bieber, “The auditor said no one was stealing money, no one was cutting checks, no one was embezzling funds; there were just mistakes that have to be corrected.”
Scott Wymysczk, chairman of the Republican Committee who ran for the town board in 2007, said “it is 100 percent blatant irresponsibility of the board or accountant. Everyone of the board members knew they couldn’t use sales tax money in the village. The village got their own money.”
Wymysczk said he will demand the village pay back money to the town and that the sales tax money gets allocated to where it belongs.
“In 2007, the town was busted for sales tax and the same thing happened,” Wymysczk said. “Now I know l live in the most embarrassing town in the state.”
Town Attorney Thomas H. Brandt, who was also the town attorney in 2007, responded to the state with a letter on Dec. 15. He wrote “The improper allocation was corrected by the Town for the 2011 budget year.”
Brandt noted that the audit report made six recommendations and five will be followed by the town. The town will be unable to review all outstanding balances of interfund balances and eliminate them by the end of the fiscal year, he wrote.
The town passed a resolution that will be made every year. The sales tax must be allocated to the “whole town outside of village” portion of the town’s budget.
Contact reporter Bill Wolcott at 439-9222, ext. 6246.
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