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Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Town of German – Oversight of Financial Operations and Tax Collector (2012M-95)


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

Purpose of Audit

The purpose of our audit was to examine the Board's oversight of the Supervisor and annual audit procedures as well as the Tax Collector's recording, depositing and remittance practices, for the period of January 1, 2011, to February 21, 2012.

Background

The Town of German is located in Chenango County. An elected five-member Town Board, which consists of the Town Supervisor and four Council members, is the legislative body responsible for overseeing the Town's operations and finances. The Town's 2012 total appropriations for all budgeted funds totaled $306,869.

Key Findings

  • The Board does not provide adequate oversight of the Town's financial operations. The Board has not developed or formally adopted any policies other than a code of ethics, the Supervisor's duties are not properly segregated and the Supervisor does not present any monthly summaries of the financial activities. Moreover, the Board does not provide for an annual audit of the Supervisor's financial records.
  • The Tax Collector did not record, deposit, or remit taxes collected accurately and timely. The Board did not audit the Tax Collector's records.

Key Recommendations

  • Develop and formally adopt policies to establish control procedures and to guide fiscal operations. Require the Supervisor to present periodic financial reports. Annually audit, or cause to be audited, the Supervisor's financial records.
  • Record payment dates as of the date payments are received. Deposit money collected within 24 hours. Remit collections to the Supervisor at least weekly. Annually audit, or cause to be audited, the Tax Collector's records.

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