Audits of Local Governments and School Districts
Town of Waverly – Internal Controls Over Selected Cash Receipts (2012M-20)
Released: April 13, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to review the Town’s internal controls over selected cash receipts for the period January 1, 2010, to October 31, 2011.
The Town of Waverly is located in Franklin County. The Town Board, which is the legislative body of the Town, consists of the Town Supervisor and four council members. The Town’s budgeted appropriations for the 2011 fiscal year were approximately $1.3 million.
- The Town lacked comprehensive written policies and procedures to provide adequate guidance and internal controls over cash receipts from water and sewer rents, property concessions, and campground collections.
- The Town had informal procedures that allowed for individual employees to collect, record, and deposit receipts, without any segregation of duties. Town officials did not provide additional oversight to mitigate this control weakness and did not ensure that all rent collections were being billed in accordance with established rates, late payment penalties properly applied, or that delinquent water and sewer accounts were properly re-levied.
- Develop and establish a written policy and procedures for the water, sewer and concession billing and collection process that clearly assigns and properly segregates duties and provides for periodic reconciliations and oversight. Establish a comprehensive campground cash receipts policy and procedures.
- Maintain a rents receivable account for water and sewer rents and periodically reconcile this account to the detailed customer accounts. Review and approve all the water, sewer and concession billing registers.
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