Audits of Local Governments and School Districts
Town of Red House – Internal Controls Over Financial Records (2012M-107)
Released: September 7, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to review internal controls over the Supervisor's records and reports for the period January 1, 2009, to April 10, 2012.
Background
The Town of Red House is located in Cattaraugus County and has a population of 38 residents. The Town is governed by an elected Town Board comprised of four Board members and a Town Supervisor. For the 2012 fiscal year the Town has an adopted budget of $159,871.
Key Findings
- There is a lack of internal controls over the Town's financial records. Due to the Supervisor's lack of adequate record keeping, cash and bank balances do not agree, and the annual financial report has not been completed since 2008.
- The Board's inadequate annual audit of the Supervisor's records, failed to note the inconsistencies.
Key Recommendations
- Establish and maintain an appropriate accounting system to properly record the Town's financial activity. File the annual financial reports with OSC for 2009, 2010 and 2011.
- Adopt policies and related procedures establishing an appropriate level of oversight with respect to the Supervisor's financial responsibilities.
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