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Potsdam town officials institute new safeguards to prevent embezzlements following arrest of court clerk

Posted 4/10/14

POTSDAM – Potsdam lawmakers have created new safeguards to prevent future embezzlements after a court clerk was arrested for stealing $117,000. The new policies began in February, when Mary Jo …

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Potsdam town officials institute new safeguards to prevent embezzlements following arrest of court clerk

Posted

POTSDAM – Potsdam lawmakers have created new safeguards to prevent future embezzlements after a court clerk was arrested for stealing $117,000.

The new policies began in February, when Mary Jo Guyette was charged by the St. Lawrence County District Attorney with one count of grand larceny, and one count of falsifying business records.

In response to an audit issued by State Comptroller Thomas DiNapoli’s office, the town has enacted several measures to reduce chances of a similar theft in the future.

Among the changes implemented by the town was the hiring of a second court clerk to ensure a second person would be equally involved in the bookkeeping.

In a letter to the comptroller’s office, town officials said they hired the second court clerk and “all duties will be shared by the each of the two clerks alternately, so checks and balances for accuracy will be in place.”

The town will also forbid the use of white-out in the ledger.

“If a mistake is made it is to be crossed out with a single line, initialed, and an explanation of the error should follow, before a corrected entry is made,” the letter said.

Other changes included better tracking for receipts and more oversight by town justices.

The changes enacted by the town exceed recommendations from the comptroller’s office.

In the letter, which is signed by Potsdam Supervisor Marie Regan along with justices James Mason and Samuel Charleson, the town says it will also seek restitution from the former clerk who stole the money.

Auditors found from May 2009 through May 2013, Guyette recorded 830 receipts totaling $115,045 in the justice court’s computerized database. These receipts, however, did not appear on the town’s printed cashbook reports, were not reported to the state Justice Court Fund and were not remitted to the town supervisor.

To avoid detection, the former clerk entered certain fines and fees into the court’s database when they were received but later altered receipt dates so they were not included in any monthly reports.

Auditors also compared receipts recorded in the town’s computer system to the handwritten cashbook entries and deposits for June 2013 and identified a cash shortage of $2,075.

“On the surface, the court’s records appeared to have been well kept and the books looked as if they were balanced,” DiNapoli said in a released statement. “But our auditors uncovered deleted and altered records for hundreds of vehicle and traffic fines that were paid but never deposited. This individual will now be held accountable for her actions because of the collaboration between my staff, town officials, District Attorney Rain and the New York State Police.”