Audit: Former treasurer for Ridge fire district practiced poor record-keeping

Poor record-keeping by a former Ridge Fire District treasurer led to nearly $3 million in discrepancies in the agency's bank accounts three years ago, a state audit said last month.

Treasurer Robert Hauser was fired in 2019 when officials became aware of problems with district finances, Jeff Campo, chairman of the Ridge board of fire commissioners, told Newsday on Monday.

Hauser told Newsday Monday night he resigned and was not fired.

Hauser, of East Moriches, is assistant superintendent for business and operations at the Connetquot school district and treasurer of the Rocky Point fire district. He previously served as Bridgehampton superintendent of schools.

The state audit, released on Jan. 26, said reports prepared by Hauser underreported balances in the Ridge fire district's nine bank accounts by a total of $2,961,784 from January to March 2019. For example, in February, Hauser's monthly report showed the district held $16,484,851 in its bank accounts; state auditors said the correct figure was $18,226,860, a difference of $1,742,009.

The audit recommended the district improve its oversight of the treasurer. It did not say any of the discrepancies were illegal in nature.

"The treasurer performed most accounting duties with limited oversight including recording disbursements, signing checks, performing transfers and reconciling the district’s bank accounts," the report said. "In addition, the treasurer did not prepare adequate monthly reports, including a list of all money received and deposited, a list of bills presented or paid and a budget status report."

The audit said the district should ensure the treasurer files accurate and timely monthly financial reports and shares them with the board of commissioners. The audit also recommended limiting commissioners' access to the accounts.

The audit found at least one instance when an unidentified commissioner inadvertently withdrew $9,201 from a fire district account. The money was returned to the district, the audit said.

The audit covered a 21-month period from Jan. 1, 2019, to Sept. 30, 2020.

Hauser did not dispute the errors cited by the audit but said the mistakes may have occurred because of a change in software.

"It’s quite possible that that contributed to any discrepancies," Hauser said. ""I can’t see any reason for a treasurer, especially myself, to understate or overstate what the numbers are."

Campo said Hauser was replaced in 2019 by Terry Ann Lawton, who Campo said has complied with the audit's recommendations.

By Carl MacGowan

carl.macgowan@newsday.comCarlMacGowan

Carl MacGowan is a Long Island native who covers Brookhaven Town after having previously covered Smithtown, Suffolk County courts and numerous spot news and feature stories over his 20-plus year career at Newsday.