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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts


Town of Minerva – Payroll and Cash Receipts (2015M-342)


Released: October 6, 2017 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the internal controls in place over the Town’s payroll and cash receipts processes for the period January 1, 2013 through April 30, 2015.

Background

The Town of Minerva is located in Essex County and has a population of approximately 810. The District is governed by an elected five-member Town Board. Budgeted appropriations for 2015 totaled approximately $2.2 million.

Key Findings

  • Because the Board has not established proper controls over payroll, the clerk to the Supervisor overpaid herself $13,940 for unauthorized direct deposits and inappropriate withholdings for retirement and health insurance, and she was paid for leave valued at $8,235 that she had not earned and was not entitled to.
  • The Board failed to establish comprehensive written policies and procedures for processing payroll and maintaining leave time accruals.
  • The clerk did not deposit a total of $10,004 in collections, and Town officials cannot account for this shortage.

Key Recommendations

  • Seek recovery of $13,940 from the clerk for unauthorized direct deposits and inappropriate withholdings and recovery of $8,235 from the clerk for leave time she was paid for that she had not earned.
  • Establish comprehensive payroll processing and leave time accrual policies and procedures.
  • Seek recovery of $10,004 from the clerk for collections not deposited.

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