Denardo
ALBANY – The Board of Commissioners of the Wallkill Fire District
did not establish adequate internal controls over the cash disbursements
process, resulting in $239,622 being stolen by its former chairman, an
audit by the state comptroller’s office said.
Michael Denardo, 39, of Wallkill, was sentenced on Friday to 2 1/3 to
seven years in state prison for stealing the money and funneling it through
his wife’s bank account without her knowledge. He also used the
district’s credit card to make $14,910 in questionable purchases,
including gas, cigarettes, groceries and other personal items.
The state review said the district board did not perform a proper audit
of claims prior to payment or ensure that adequate supporting document
was attached.
Key recommendations from the audit include a review of the questionable
disbursements identified in its report and to seek reimbursement as appropriate
and implement a cash disbursement policy that prohibits distribution or
signing of blank checks.
The state also said all claims should be properly audited before authorizing
payment and ensure that each claim has detailed supporting information.
