Audits of Local Governments and School Districts
Town of Hannibal – Internal Controls Over Cash Receipts (2011M-245)
Released: February 3, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine internal controls over the Town Clerk's cash receipts process for the period January 1, 2010 to May 31, 2011.
Background
The Town of Hannibal is located in Oswego County. The Town Board, composed of five members, is the legislative body responsible for the general management and control of the Town's financial and operational affairs. The Town's operating expenditures for 2010 were approximately $1.6 million.
Key Findings
- The Town Clerk, who is also the bookkeeper to the Supervisor, has cash receipt duties that are not segregated and there are no compensating controls.
- The Town Clerk should not hold the position of bookkeeper to the Supervisor because the two positions are incompatible. The positions have functions that serve as checks against one another that do not exist unless they are performed by separate individuals.
Key Recommendations
- Segregate the bookkeeper to the Supervisor's duties so that one person does not control all aspects of the cash receipts process.
- Designate a person other than the Town Clerk as the bookkeeper to the Supervisor.
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