Internal Controls Over Selected Financial Activities
We found weaknesses in internal controls over the Library's payroll process relating to compensation provided to Library employees for separation payments and leave time which resulted in the Library incurring over $21,000 in unauthorized expenses. In addition, internal controls over purchasing, claims processing and cash receipts need to be improved. Finally, the Library failed to establish adequate policies and procedures for the security of the computer data system.
Smithtown Special Library District[complete audit - pdf]
Internal Controls Over Selected Financial Operations
The Board has not established an internal control system that provides for adequate oversight over employee leave accruals and compensatory time accruals. The Senior Library Clerk's and the Head of Circulation's duties were not adequately segregated. As a result, Library officials granted employees leave and compensatory time that they were not entitled to, and they underreported other employees' accruals. The Library's claims processing procedures also need to be improved. Finally, the Board appointed a Board member as Treasurer. The lack of independence makes Library assets more susceptible to misappropriation.
Wantagh Public Library[complete audit - pdf]
We found that the Board had not developed written policies and procedures covering procurement, investments, ethics and claims auditing. As a result, there is a greater likelihood that the Library could pay more than necessary for goods and services, the Library may not be maximizing investment opportunities, and that errors or irregularities could occur and remain undetected.
Clifton Park-Halfmoon Public Library District[complete audit - pdf]
Internal Controls Over Financial Operations
The Board did not hold the number of meetings required by its bylaws, some Trustees did not fulfill their obligation to attend meetings, and the Board's Secretary and Treasurer did not perform the duties for which they were appointed. The Board failed to provide proper stewardship of Library operations, set an example to staff, or fulfill its fiduciary responsibilities, including auditing and approving claims before payment; ensuring that Board meetings were recorded and that Library funds were disbursed in accordance with industry guidelines; maintaining a proper segregation of duties between financial decision-making and cash custody; and preparing financial reports in a manner consistent with the City's accounting methods. We also found control weaknesses in the cash receipts function, including the use of common cash drawers, inconsistent use of duplicate receipts, inadequate segregation of duties, and unconfirmed cash counts. As a result, $6,967 in revenue from fines was unaccounted for over a two-year period, and Library officials cannot be assured that moneys are properly collected, recorded, and deposited.
Niagara Falls Public Library[complete audit - pdf]