“Disparities between system-recorded and actual bank deposits raise serious concerns about whether all funds received by the clerk’s office have been properly deposited, accounted for or even retained.””

— Javid Afzali

TOWN OF HIGHLAND, NY— A preliminary report by an independent firm has found a host of instances of “inconsistent recordkeeping,” including the presence of $4.5 million of unrecorded tax deposits from 2022 and 2023 in a town account. The firm, The Bonadio Group, was hired by the Highland Town Board to conduct a forensic analysis of the “operations of the Town Clerk’s Office.”

The current town clerk, Sue Hoffman, is under censure and had her town computer seized after two resolutions were passed by the town board at a February 26 emergency meeting. 

The town attorney, Javid Afzali, shared the preliminary findings from The Bonadio Group at the May 13 town board meeting. The board first voted to pursue a forensic analysis in January 2025.

Other preliminary findings from the forensic audit of Highland

• Transactions recorded in IPS, BAS and other systems [software systems used for permits, zoning, code enforcement, land use management and clerks’ office automation software for tax collection, receipting, accounting and reporting, respectively] show significant discrepancies in amounts, payment types and names.
• Transaction totals across systems do not align with deposits to corresponding bank accounts.
• BAS recorded $6,087.21 less than what was deposited in the clerk’s checking account in 2024.
• The DEC portal [used by the clerk’s office for hunting and fishing licenses] showed $240 more in receipts than was deposited across three years.
• 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.
• Clerks are required to remit monthly fees by the 15th and tax collection weekly. In 2024, only six monthly remittance checks were made, and some were up to four months late.
• No remittances from the DEC account were made in 2023 or 2024, despite activity.
• Delays noted in death certificate filings and NYS retirement membership enrollments.
• Confusion regarding insurance benefits for a former Clerk [Doreen Hanson] remains unresolved.
• Reports of unfiled permits, underposited checks/cash and physical discrepancies in clerk-managed funds.
• A 9/11 memorial bank account tied to the town may have had its EIN changed without board authorization.
• Concerns about off-site shipment of DEC permit tags shipped to a private (non-town) address.

Source: The Bonadio Group preliminary audit report findings

Afzali summarized the report, noting the findings of “inconsistent record keeping,” “potentially missing or misallocated funds/unexplained variances in receipts vs. deposits,” “deposit delays and potential violations of town law 27(1),” “failure to timely remit collected revenues,” “administrative lapses in state and county reporting” and “other concerning observations.”

Afzali noted the findings are “very preliminary” and that he has no idea when the final report will be completed. 

“In 2022 and 2023, tax deposits to the SNOW account exceeded recorded receipts by nearly $1M and $3.5M, respectively—raising serious reconciliation concerns,” stated Afzali.

All the receipts for all residents and properties and their property taxes, along with payments made, are deposited into the Jeff Bank Public Funds Super NOW (SNOW) account, says the Bonadio preliminary report. According to Jeff Bank, Super NOW is an interest-bearing account designed for municipalities who carry large balances in their checking account.

Why is it of concern to the town?

“Disparities between system-recorded and actual bank deposits raise serious concerns about whether all funds received by the clerk’s office have been properly deposited, accounted for or even retained. When tax deposits exceed recorded collections by hundreds of thousands or millions of dollars—or conversely, system records show more revenue than what is deposited—it creates the appearance of either negligence, mismanagement or possible misconduct. These variances erode public trust and may expose the town to liability for unreported or misappropriated funds,” said Afzali. 

The town supervisor, John Pizzolato, said he hopes the findings will “hopefully inform a more secure Town of Highland moving forward.”

“Some of their [Bonadio Group’s] initial findings just suggest that, by definition, the role of the clerk’s office was designed in a really interesting time where a lot of municipalities were going from manual into the digital age, and one individual held that position through that transition for a 20-year period, and there are no bumpers that have been created around that position, and there’s a lack of transparency around that position. There is no oversight for the board with a lot of those accounts,” said Pizzolato. 

Doreen Hanson, the former town clerk, served for 22 years until she retired in 2021. 

Pizzolato called the findings “troubling.” “As the financial officer of the town, I want to take all this information and hopefully move forward from this experience, this auditing experience, and create a more secure town clerk’s office for our community, and really kind of reimagine what this thing looks like,” he said.

The Bonadio Group was paid $19,501.25 by the town in April. The annual town clerk salary is $43,054.50 in the 2025 adopted budget. 

The resolution which placed the current town clerk, Sue Hoffman, under censure in February stated, “Susan Hoffman, town clerk, has engaged in gross negligence regarding her duties, resulting in a failure to produce and maintain critical town records dating back to 2021, thereby hindering the effective operation of town government and eroding public confidence in the integrity of the town’s administration.” 

As an elected official, the town clerk cannot be fired by the town board.

The board has gone into executive sessions at the May and April town board meetings “for the purposes of sharing information relating to the current or future investigation or prosecution of a criminal offense which would imperil effective law enforcement if disclosed,” and for “discussing the medical, financial, credit or employment history of a particular person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a particular person or corporation,” respectively.

No further information was provided by the board about the discussion or the status of the censure of Hoffman and the seizure of her town computer.