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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 White Creek – Board Oversight of Financial Activities (2013M-64)


Released: September 13, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine if Town officials provided adequate oversight of the Town’s financial activities for the period January 1, 2011, to September 30, 2012.

Background

The Town of White Creek is located in Washington County and has a population of approximately 3,400. The Town is governed by an elected five-member Town Board, which consists of the Town Supervisor and four council members. Budgeted 2013 appropriations were $271,156 for the general fund and $672,290 for the highway fund.

Key Findings

Our audit revealed that the Board’s involvement and scrutiny of financial activities and operations was inadequate, and that the Board and Supervisor were unaware of the inadequate condition of the Town’s accounting records.

  • The Supervisor did not adequately oversee and monitor the work of the Budget Officer who served as the Town’s bookkeeper and maintained the Town’s accounting records. Due to the poor condition of the Town’s financial records and reports, the Board was unable to determine the Town’s true financial condition or effectively monitor the Town’s financial operations.
  • The Board also was unaware that the Town was not in compliance with payroll tax filing or payment requirements for Federal and State liabilities.
  • The Board did not ensure that the Supervisor had prepared the 2010 and 2011 annual financial reports, and the Supervisor never filed these reports with the Town Clerk or OSC.
  • The Board failed to perform an adequate audit of the Supervisor’s and Town Clerk’s books and records.

Key Recommendations

  • Ensure that the Budget Officer has the necessary training in municipal accounting and the Town’s software to help her accurately maintain the Town’s records and reports. Oversee and monitor the Budget Officer’s work.
  • Ensure that the Supervisor complies with all Federal and State payroll filing and payment requirements in a timely manner.
  • Prepare and file the Town’s 2010, 2011, and 2012 AUDs with OSC and ensure that the Budget Officer submits all subsequent AUDs to OSC within 60 days of the Town’s fiscal year end.
  • Perform a proper annual audit of the books and records of the Supervisor and Town Clerk.

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