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Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Town of Minisink – Board Oversight and Financial Condition (2011M-215)


Released: February 10, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the Town’s financial operations for the period January 1, 2010 to March 31, 2011.

Background

The Town of Minisink is located in Orange County. The Town is governed by the Town Board, which comprises five elected members including the Town Supervisor and four council members. The Town’s annual budgets for 2009 and 2010 were $2,713,249 and $2,487,982.

Key Findings

  • The Supervisor did not provide adequate training and oversight of the clerk, which resulted in transactions that were incorrectly recorded in the trust and agency fund, general ledgers that were not up-to-date and monthly reports that lacked essential information.
  • The Board did not audit the records and reports of the Supervisor, Clerk, Planning Board or Justices for 2009 or 2010.
  • The Board did not implement procedures for the preparation of financial reports. Consequently, the Supervisor did not provide appropriate information, which caused the Board adopt budgets that overestimated revenues. This caused the town-wide general fund balance to decline from $370,140 in 2005 to a deficit fund balance of $156,733 in 2010. As a result, the Supervisor advanced moneys held in a trust and agency account to the town-wide general fund, which is not allowed by Law.

Key Recommendations

  • Provide proper training and oversight of the clerk so that the accounting records and reports are accurate and up-to-date.
  • Audit or cause an audit of the records and reports of Supervisor, Clerk, Planning Board, Justices and any other officers or employees who receive or disburse moneys on behalf of the Town.
  • Implement policies and procedures for the preparation of financial reports including budget to actual results for revenues and expenditures. Refrain from using trust and agency moneys to make inter-fund loans for current operations.

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