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NYS Comptroller

THOMAS P. DiNAPOLI

Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Town of Rensselaerville – Financial Operations (2012M-168)


Released: January 11, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the Town’s financial operations for the period January 1, 2011, through April 30, 2012.

Background

The Town of Rensselaerville is located in Albany County and has a population of about 1,800. The Town Board (Board) is the legislative body responsible for managing Town operations. The Town’s operating funds’ appropriations for the 2012 fiscal year are approximately $2.1 million.

Key Findings

  • The Town’s accounting records are in poor condition and do not provide an accurate portrait of its financial condition. In fact, the Town’s general fund was overstated by a total of $247,036 in fiscal year 2011, which was 30 percent of the budgeted revenues. This overstatement occurred because the Town did not properly account for property and sales tax revenue.
  • The Supervisor did not maintain complete, accurate and up-to-date accounting records and has not filed the AUD for 2010 and 2011.
  • Town officials have not performed bank reconciliations for 2011 or 2012.
  • Former employees still had online banking user accounts, and the Supervisor and bookkeeper had excessive online banking privileges because the Board failed to establish policies and procedures for online banking.

Key Recommendations

  • Ensure that accounting records accurately and completely reflect the Town’s financial activity.
  • File the Town’s AUD with OSC and the Clerk within 60 days after the close of the fiscal year, or 120 days after the close the fiscal year if an extension is granted.
  • Perform complete and accurate monthly bank reconciliations and ensure that any disclosed differences are promptly identified and resolved.
  • Establish a comprehensive online banking policy that adequately addresses all online banking activities and functions, including who has the ability to perform transfers and what accounts can be accessed through online banking

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