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Greenburgh comptroller flags budget 'plugs' and missing revenue; board asks state controller to review
Summary
Comptroller Gutwein presented a forensic review of 2020–2023 finances that found budget‑to‑financial‑statement mismatches, extensive contingency and fund‑balance use, and accounting 'plugs.' The board voted in a work session to ask the New York State Office of the State Comptroller to review the auditors' findings.
Comptroller Gutwein presented findings from a forensic review covering fiscal years 2020 through 2023 and urged tighter budget oversight and corrective action. Gutwein said the audit showed approved budget amounts did not always match published financial statements, that contingency funds were used excessively, and that fund balance had been drawn down to smooth tax rates.
The comptroller said the report identified “plugs” — accounting entries inserted to force accounts to balance without corresponding cash — and noted about $29 million in uncollected or unreconciled taxes. “A plug is when you force something to balance out,” Gutwein said, describing how entries had been used to reconcile discrepancies between cash and tax records.
Why it matters: board members said the findings change the town's near‑term fiscal outlook and could limit planned projects. Several members said the report reduces confidence in projected funds for initiatives such as sidewalks and other capital work.
During a heated exchange, board members debated who bore responsibility for past budget choices. One member urged the board to seek an outside review; another cautioned about political finger‑pointing while saying the audit is a roadmap for corrective steps.
A motion to send the forensic report to the New York State Office of the State Comptroller was made by a board member and seconded; in the work session the board voted to request the state review, with one member announcing an abstention on the record. The supervisor said he would write to the state controller to request the review and the comptroller cautioned that the state’s office evaluates fiscal distress separately and may not treat the town as a fiscal‑distress candidate.
Next steps: the supervisor said he would send the letter to the state controller, and the board asked staff to bring follow‑up briefings from the tax and water departments and other affected offices to address the audit recommendations and track corrective actions.
Quote: “The corrective action plan I have put forward is quarterly review of financial statements, reduced contingency amounts and reduced use of appropriated fund balance,” Gutwein said.
The board made the referral during the Feb. 24 work session; the motion and vote were taken during the public portion of the meeting and the supervisor said the town will also pursue internal follow up and departmental corrective action.
