Audit finds Lawrence financial glitches

Lawrence Village officials have some kinks in their financial management practices that need to be worked out, according to a state comptroller's audit report.

Auditors found that the board of trustees did not audit claims and allowed the former village administrator, Dan Herron, to pay claims to vendors before informing the board. Village officials also hired professional service providers for nearly $1 million without soliciting competing bids, the audit, released Monday, said.

Internal controls over payrolls and personnel services also need to be improved, the audit found. Three employees received leave time and/or payments valued at $13,914 to which they were not entitled, the audit said. Officials also need to improve safeguarding computer data.

"These audits are tools for local officials to make sure proper policies and procedures are in place to protect taxpayer dollars," state Comptroller Thomas DiNapoli said in a statement.

The audit covered the period June 1, 2008, to Oct. 31, 2009. The four-square-mile village reported expenditures of about $10.5 million for the fiscal year ending May 31, 2009, state officials said.

Mayor Martin Oliner, who started his term a year ago, said his administration had started making many of the changes suggested by the comptroller before the audit was released. The mayor during the audit period was C. Simon Felder, who is now on the board as a trustee. Felder did not immediately return calls for comment.

"Before we knew about the audit details, it turns out we had addressed them all," said Oliner, who was a trustee during the audit period. "We did a check and balance control. It is a total different system now."

Oliner said the village has instituted a new system that requires every order be in writing and approved by him before checks are cut. The village has also adopted procedures for leave time, the administration of overtime and to better maintain personnel files. It has upgraded its information technology and the network infrastructure.

"The controls certainly should have been there," said Oliner, who along with the trustees serves without compensation. "Residents should feel confident that things are running smoothly and properly today."