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Office of the State Comptroller - Local Government & School Accountability
Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Town of Lloyd – Internal Controls Over Selected Financial Operations (2012M-31)


Released: May 18, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine internal controls over selected financial operations for the period January 1, 2010, to August 4, 2011.

Background

The Town of Lloyd is located in Ulster County and has a population of 10,863. The Town is governed by the Town Board which comprises the Town Supervisor and four elected Board members. The 2011 budget for all funds was approximately $8.9 million.

Key Findings

  • The Board, as a collective whole, does not audit and approve claims as required, but rather establishes an audit committee, consisting of one Board member, to audit and approve claims for payment.
  • One Board member, who is the owner of a hardware store, had a prohibited interest in a contract with the Town.
  • Other than an electronic banking policy, the Town did not have any policies and procedures related to cash receipts and disbursements.
  • Town officials have not established a breach notification policy or remote access policy.
  • The Town did not have a formal process for collecting and tracking workers' compensation and disability insurance forms from vendors they do business with.

Key Recommendations

  • Ensure that all vouchers are audited prior to disbursing checks for payment.
  • Establish and implement controls to ensure that the Town does not enter into contracts in which an officer or employee has a prohibited interest.
  • Establish written policies and procedures for cash receipts and disbursements.
  • Adopt an information breach notification policy. Establish remote access policies and procedures to define who can access the system and the methods to gain access.
  • Develop a formal process for the collection, maintenance, and tracking of workers' compensation and disability insurance forms from vendors.

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