Town of Mamakating – Records and Reports (2015M-164)

Issued Date
November 20, 2015

Purpose of Audit

The purpose of our audit was to evaluate the Town’s recorded and reported financial transactions for the period January 1, 2014 through January 23, 2015.

Background

The Town of Mamakating is located in Sullivan County, has a population of approximately 12,000 and is governed by an elected five-member Town Board. The Town’s 2015 budget appropriations for its four main funds totaled $5.7 million.

Key Findings

  • Interfund advances reported in the annual financial report as of December 31, 2014 erroneously totaled more than $1.2 million because cash balances for the town-outside-village general and highway funds continued to be reported in the town-wide funds.
  • While the 2014 annual financial report correctly showed reserved cash that agreed with the Town’s reserve fund balances, the bookkeeper did not record the transfer of these funds to the reserves in a timely manner or record town-outside-village general and highway fund cash balances in the accounting records.
  • The Board did not have accurate information on which to base its annual budgets, making it difficult for Town officials and other interested parties to evaluate the Town’s financial condition.

Key Recommendations

  • Use interfund advances only when an operating fund is in need of short-term cash and ensure interfund advances are properly reconciled throughout the year and repaid prior to the year-end as required.
  • Ensure the bookkeeper transfers money to reserve funds in a timely manner.
  • Provide adequate oversight of and monitor the Town’s overall financial condition, by developing long-term plans that include fund balance and reserve fund goals, reviewing accurate up-to-date financial reports and developing realistic budgets in conjunction with these goals and results of operations.