HIGHLAND — In February, Highland Town Clerk Sue Hoffman was censured by the town, and her work computer was seized by New York State Police pending investigation on ‘gross negligence.’ On Tuesday, a preliminary report on that investigation was shared before the Town Board highlighting key findings from the outside firm.

The report, created by Bonadio & Co., LLP partner Timothy Ball, CFE, was summarized by Town Attorney Javid Afzali, who offered the conclusion that “the Clerk’s records appear to be incomplete, internally inconsistent, and possibly irreconcilable.” 

The legal counsel went on to write that “without contemporaneous receipt logs and more complete access to systems, a full reconstruction of the Clerk’s office activity may be infeasible. The lack of reliable financial controls poses serious risks to the Town’s compliance, transparency, and fiscal accountability.”

Five main key findings were addressed in the report. Those included the following: 1.) inconsistent recordkeeping, 2.) potentially missing or misallocated funds, as well as unexplained variances in receipts versus deposits, 3.) deposit delays and potential violations of Town Law, 4.) failure to timely remit collected revenues, 5.) administrative lapses in state and county reporting.

In his summary, Afzali broke down those findings even further:

1.) Inconsistent 

Recordkeeping

Transitions recorded in IPS (Integrated Property System) and BAS (Business Automation Services) show significant discrepancies in amounts, payment types and names.

Transaction totals across systems do not align with deposits to corresponding bank accounts.

2.) Potentially missing or misallocated funds

BAS recorded $6,087.21 less than what was deposited in the Clerk’s checking account in 2024.

The DEC portal showed $240 more in receipts than what was deposited across three years.

In 2022 and 2023, tax deposits to the SNOW account exceeded recorded receipts by nearly $1 million and $3.5 million respectively.

3.) Deposit delays, 

potential town law 

violation

Deposits were often not made within three business days of receipt, as required.

Multiple months in 2024 showed no deposits, despite the presence of cash receipts in system logs.

4.) Failure to timely remit collected revenues

Clerks are required to remit monthly fees by the 15th and tax collections weekly.

In 2024, only six months remittance checks were made. Some were four months late.

No remittances from the DEC account were made in 2023 or 2024, despite activity.

5.) Administrative lapses in state, county reporting

Delays noted in death certificate filings and NYS Retirement membership enrollments.

Confusion regarding insurance benefits for a former Clerk remains unsolved.

Other “concerning 

observations”

The Bonadio group preliminary findings also noted that:

Reports of unfiled permits, undeposited checks/cash, and physical discrepancies in clerk-managed funds.

9/11 memorial bank account tied to the Town may have had its EIN (Employer Identification Number) changed without Board authorization.

Concerns about offsite shipment of DEC permit tags shipped to private address

Town Supervisor Johnny Pizzolato said “the findings of this [preliminary report] will hopefully inform a more secure town of Highland moving forward. Some of their initial findings suggest that…the role of the clerk’s office was designed in a really interesting time where a lot of municipalities were going from the manual age into the digital age.”

“One individual held that position through that transition for a 20 year period and there are no bumpers that were created around that position,” the Supervisor continued, “and there is a lack of transparency around that position.”

Prior to Hoffman, the role was held for 22 years by former Town Clerk Doreen Hanson until 2021. While the investigation continues, the duties and responsibilities of the Town Clerk are being performed by Deputy Town Clerk, Melissa Denlinger.

The Democrat reached out to Hoffman but did not receive comment. The final report on the full findings regarding the Clerk’s Office have yet to be released and no charges have yet been filed, however the Town Supervisor told the Democrat that “[Bonadio] will be presenting the New York State Police and Comptroller with their final report to initiate charges.”