Audits of Local Governments and School Districts
Town of Homer – Non-Payroll Disbursements (2012M-85)
Released: July 13, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine financial information to ensure that only Board-approved non-payroll disbursements were made for the period January 1, 2011, to April 5, 2012.
The Town of Homer is located in Cortland County. An elected five–member Town Board, which consists of the Town Supervisor and four Council members, governs the Town. The Town’s annual budget for the 2012 fiscal year is over $1.6 million.
- The Board and Supervisor have not ensured that the Board approved all non-payroll disbursements. The Board has an effective system to audit and approve claims that are presented for payment; however, there is no system in place to verify that each non-payroll disbursement made was properly presented to and approved by the Board. The Town Clerk, while acting as the Supervisor’s bookkeeper, performs all aspects of the non-payroll disbursement process.
- The Supervisor appointed the Town Clerk to act as his bookkeeper; however, the duties of the Town Clerk are incompatible with the duties of the Supervisor’s bookkeeper.
- Ensure that no one individual has custody of assets, the ability to authorize a transaction, and the responsibility to record and report the transaction.
- Discontinue having the Town Clerk function as the Supervisor’s bookkeeper.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: firstname.lastname@example.org
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236