Nassau County Sanitary District 2 Waste Fiscal Consolidation

Special Taxing Districts | Sanitary District 1 | Sanitary District 2 | Sanitary District 6 | Sanitary District 7

 

• Continued Spending While In Debt
In 2001, the Board of Commissioners approved $184,000 in district funds to purchase a building; with no use for it specified. This was while the District was already $330,000 in debt.

 

• 80 % of Budget Spent on Salaries and Benefits
In 2005, the district had a budget of $9.4 million, more than 80 percent of which was spent on salaries and employee benefits. This is well over the proportion that would constitute sound business practice and reasonable constituent service.2

 

• Lack of Adequate Financial Operation Structure
There’s no segregation of duties for financial transactions for administrative personnel. This has led to duplicate payments and lack of supporting documentation.1

 

• No Written Policy for Conflict of Interest/Ethical Standards
The District doesn’t have written policies establishing conflicts of interest and ethical standards. There are no guidelines to define what documentation is needed for cash disbursements and no policies in place for petty cash or credit card usage.1

 

• Misuse of Travel Expenses
In 2003, Sani 2 employees spent $3,195 in travel expenses for a conference in New Orleans.1 The trip, attended by four district managers, included a $676 tab for dinner at Morton's Steakhouse.3

 

• Missing Checks
Not all checks are recorded in the general ledger. A check for $2.1 million was transferred from one bank to another within the General Fund but was not a part of the General Fund’s written check’s list.1

 

• Part Time Workers Get Full Life Insurance
The district provides group term life insurance to its commissioners and two attorneys at a cost of $108,300 even though they do not hold full-time positions in the district.1

 

• Non-Existent Job Descriptions
Written job descriptions are either non-existent or vague. The district does not have formal written procedures for accounting and operating functions.1

 

• Board Members Don’t Follow Policy
Three board members are required to sign claim vouchers evidencing receipt of goods, but not all of them review the claims before signing. They often rely on the signature of the board secretary and general supervisor for validity.1

 

1 Nassau County Comptroller Audit, Financial Audit of Sanitary District No. 2–Town of Hempstead, 21 September 2005
2 Bonilla, Denise M. “Paying Twice as Much for Garbage…” Newsday June 15, 2005
3 Bonilla, Denise M. “Nassau comptroller levels charges of excessive spending mismanagement in Lawrence district” Newsday September 8, 2005

 

 

   Connect with us on Facebook