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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Sherrill-Kenwood Water District – Board Oversight (2012M-100)


Released: August 24, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the Board's oversight of District fiscal operations for the period January 1, 2010 to October 31, 2011.

Background

The Sherrill-Kenwood Water District provides water services to areas in the City of Sherrill, the City of Oneida and the Town of Vernon. The District is governed by the Board of Water Commissioners which is comprised of three members and is responsible for the general management and control of the District's financial affairs. The Secretary is responsible for the District's finances, accounting records and financial reports. The District's revenues received for the 2011 fiscal year were approximately $486,000. Revenues for the 2010 fiscal year were approximately $490,700.

Key Findings

  • Although the District has not fully segregated duties related to the billing and collection of water rents, District officials told us that they have supervisory review procedures in place to mitigate the risks. However, there was not sufficient documentation on file to substantiate the extent of the supervisory review procedures.
  • The District's procedures do not provide for individual accountability for collections because the three clerks who collect cash use the same cash drawer and the same user name and password in the computerized financial system.
  • The Board did not receive monthly reports to monitor the District's financial activity and condition, and did not require an annual audit of the Secretary's records and reports.

Key Recommendations

  • Document the supervisory review of the clerks who are involved with cash handling and recordkeeping.
  • Establish and implement policies and procedures that require the use of individual user accounts and cash drawers in order to establish accountability over the three clerks in the office.
  • Ensure that monthly financial reports are generated in order to monitor the District's financial operations. Perform, or provide for, an annual audit of the District's records and reports.

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