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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Rushford Lake Recreation District – Internal Controls Over Cash Receipts and Consultant Services (2011M-209)


Released: January 27, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine if the District is operating efficiently and protecting assets from loss or misuse, for the period January 1, 2010 to August 5, 2011.

Background

The Rushford Lake Recreation District (District) was created by an act of the State Legislature in 1981. The District lies within the Towns of Caneadea and Rushford in Allegany County and is governed by a five member Board of Commissioners (Board). The District's operating budget for the 2011 fiscal year was approximately $300,000.

Key Findings

  • District officials failed to adopt comprehensive policies and procedures for cash collection at the District office and the boat launch facility. The District secretary could not provide us with all duplicate receipts for our audit period. As a result, we could not confirm that all cash collected was appropriately accounted for and subsequently deposited in District accounts as required.
  • The District paid a consultant, a former District commissioner, to provide dam consulting services without soliciting proposals from other professionals or entering into a written contract to indicate the scope of services or basis for compensation. To date, the District made three payments to this consultant totaling $12,100.

Key Recommendations

  • Adopt comprehensive policies and implement written procedures that govern the receipt of cash for all officers and employees of the District.
  • Seek competition for dam consulting services, and ensure that services are provided and payments are made in accordance with written contracts.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236