Review shows flaws in Troy Dispatch

Troy Area Dispatch District Chairman Gene Rogers profited $4,471.87 when he sold a generator to the district he oversees.

This was one of several findings when an independant report examining the spending practices of Troy Area Dispatch District was released Monday.

Nicole M. Noonan, a certified public accountant in St. Regis, released a three-year evaluation enumerating numerous opportunities for fraud.

“During a review of void checks, (I) noted several checks were signed prior to being written,” Noonan wrote. “The practice of presigning checks is not recommended since this creates opportunity for fraudulent disbursements by undermining the dual-signature controls in place.”

Noonan also found that City of Troy Clerk and Treasurer Tracy Rebo is a signor on dispatch’s account.

“It is recommended that the persons responsible for writing the checks and keeping the accounting records are not signors on the account, since this represents a lack of segregation of duties and creates an opportunity for fraud,” Noonan wrote.

Rogers previously characterized the markup on the generator he sold as “very little.” Noonan found the markup to be 15 percent.

Noonan also found that furniture was purchased from a business owned by an immediate relative of a board member.

“Disbursements of this nature should be bid or a number of similar estimates obtained and adequately documented so that the public can be sure that amounts disbursed are in the best interest of the district,” Noonan wrote.

Several of Noonan’s 14 recommendations and findings detailed minor paycheck discrepancies that likely occur at any business. However, her final point addressed the county’s handling of floating mills.

“The district is funded by a mill levy of ‘not more than 7 mills’ authorized by the voters in 1996 and an additional mill levy of ‘13 mills, or $70,850’ authorized in 2000, for a total of 20 mills,” Noonan wrote. “The actual number of mills levied on property has increased each year based on imposing a floating mill under state statute 15-10-420. Since the mills were voted at a certain level, it is my opinion that state statute 15-10-420 does not apply and they should be levied at 20 mills each year, although opinions vary on this matter.”