Town of Greig Clerk accused of diverting funds

The Town of Greig Clerk allegedly used funds intended for an environmental improvement project to conceal a shortage in a tax collection bank account, this according to an audit that was released yesterday by State Comptroller Thomas DiNapoli.  Auditors reportedly found that the clerk diverted a $17,365 state grant check for the Black River Watershed into a Town of Greig tax collection account to cover a $16,000 shortage.  When questioned about the discrepancy by auditors, the town clerk acknowledged the shortage and later reimbursed the town from her personal account for the full amount.  The audit, which covered 2008 through 2011, also found that the clerk inappropriately allowed her granddaughter to help collect taxes in 2011, did not maintain a cash receipts journal to record the moneys collected for licenses and fees, did not provide financial reports to
the board to enable monitoring activity in the Black River Watershed account, & that the town board did not audit or contract with an independent auditor to examine the records maintained by the town clerk.  DiNapoli said the town board should perform an annual audit of the clerk's records and consider more frequent monitoring of the clerk's financial activities to help ensure that records and reports are adequate and accurate.  The town has begun to implement many of the Comptroller's recommendations.  The case has been referred to State Police officials for investigation.