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NYS Comptroller

THOMAS P. DiNAPOLI

Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Town of Deposit – Town Clerk Duties and Financial Condition (2012M-150)


Released: December 28, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine if the Board adequately managed certain Town affairs for the period January 1, 2011, through February 22, 2012.

Background

The Town of Deposit is located in Delaware County and includes the Village of Deposit within its boundaries. The Town’s population is 1,712. The Town is governed by an elected five-member Town Board comprising the Town Supervisor and four Board members. The Town spent a total of $1.2 million for the fiscal year ended 2011.

Key Findings

  • The Board and Supervisor did not provide adequate oversight of the duties performed by the Clerk. Therefore, no one can be sure that all moneys paid to the Town are actually recorded and deposited in Town bank accounts. The Clerk collects and deposits all Town moneys received and processes payroll with limited oversight. She did not maintain sufficient records to determine the total amount collected.
  • The Supervisor did not maintain care and custody of all Town moneys or certify the payroll prior to being paid by a payroll vendor and the Board did not audit or provide for an annual audit of the Clerk nor Supervisor’s records and reports.
  • Town officials did not adequately manage the Town’s financial condition. At the end of 2011, both the Highway and the Capital funds had negative fund balances totaling over $144,000, and we project the negative balance to continue to grow during 2012.

Key Recommendations

  • Ensure that the duties performed by the Clerk are proper and adequately segregated or that compensating controls are in place.
  • Do not allow third-party vendors to have access to the Town’s bank account. Certify the payroll by reviewing the payroll details prior to payment. Audit or provide for an audit of the Town’s financial operations.
  • Closely monitor the financial status of its operating funds throughout the year. Develop long-term plans to eliminate the various negative fund balances. Reduce reliance on fund balance as a financing source for recurring expenditures.

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