KIANTONE – A recent audit has revealed that a Kiantone town clerk allegedly failed to deposit more than $3,000 in tax collections.

The audit, conducted by the New York State Comptroller’s Office, examined the clerk’s activities from Jan. 1, 2013 to Aug. 1, 2014, and found that Melanie Hutley received $3,126 from the 2013 and 2014 collection periods and left no record that the money was ever deposited.

Moreover, the audit revealed that Hutley remitted taxes to the town supervisor once a month, contrary to town and real property tax laws, which require the clerk to remit taxes at least once a week.

The audit also discovered that receipts on 14 reports of daily tax collections were recorded- on average- more than 17 days after the payment stub date. Collections are supposed to be deposited within 24 hours of receipt.

Indeed, one deposit of $1,867 was not made until 57 days after it was received.

The audit further cracked down on an apparent lack of accountability and oversight by both the clerk and town board.

Namely, it stated that Hutley provided inadequate monthly accountability reports, and failed to identify the amounts she owed to both the supervisor and others.

The town board, it continued, failed to provide proper oversight of Hutley’s financial activities.

Kevin Myers, Kiantone town supervisor, provided a written response to the comptroller’s office, stating that “appropriate actions” would be taken to rectify the situation.

“It is the belief of the Kiantone Town Board that all money in previous years was handled and accounted for in full,” Myers wrote. “Our process of performing audits has been consistent throughout the years and everything has been approved by the comptroller’s office up to this point. This being said, we feel that money within the town has been handled properly, but agree that improvements are needed.”

Myers suggested that “increased duties” may have led to Hutley’s inability to perform functions in a timely manner, and that the addition of a tax collector position was required.

“A motion was made and approved at the November 2014 board meeting to assign Kiantone resident Mark Marchincin, CPA, as our newly appointed tax collector,” Myers wrote.

As for the $3,126 cash shortage, Myers said that approximately $1,300 has already been recovered, reportedly located in Hutley’s filing cabinet. The remaining amount, he said, will be recovered by deducting $150 from Hutley’s monthly paycheck, which began in January.

The comptroller’s office provided a response to Myers, stating that the board’s previous audits, while consistent, still have questionable methods.

“Even a cursory audit should have detected the problems we cite in this report,” the comptroller’s office stated.

The comptroller’s office also insisted that the board consult with its legal counsel to determine if its method of forming a tax collector position was legal.

Finally, the OSC encouraged the board to make sure that the $1,324 found in Hutley’s filing cabinet was actually recovered money, and not unreported clerk fees.