Skip to Content

Login   Subscribe   Site Index   Contact Us   Google Translate™

NYS Comptroller

THOMAS P. DiNAPOLI

Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Village of Barneveld – Internal Controls Over Water Billings, Collections and the Water Filtration Project (2012M-176)


Released: December 21, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine if the Board provided oversight of the fiscal operations of the water fund and the water filtration plant capital project for the period June 1, 2010, to May 31, 2012.

Background

The Village of Barneveld is located in Oneida County. The Village is governed by an elected Board, which comprises a Mayor and four elected Trustees. The Village’s general and water funds’ total budgeted appropriations for 2011-12 were approximately $240,000.

Key Findings

  • The Board did not segregate the duties of the Clerk-Treasurer, who was responsible for billing, collecting, recording, and depositing water rents.
  • The Board did not audit the Clerk-Treasurer’s financial report and supporting records.
  • Village officials also did not adequately plan, account for or monitor the water filtration capital project. Consequently, as of January 2012, the project’s cost was approximately $408,000 or $108,000 (36 percent) over the highest of the three cost estimates ($300,000).
  • During the course of the project, Village officials did not follow competitive procurement requirements for seven purchases that totaled $210,310, which may have resulted in the Village paying more than necessary to complete the project.

Key Recommendations

  • Segregate the duties for billing, collecting and recording water rents or provide for compensating controls.
  • Perform, or provide for, an annual audit of the Clerk-Treasurer’s financial report and supporting records.
  • Establish a maximum authorized amount and identify the financing sources prior to undertaking capital projects. Develop a formal project plan and budget for each capital project.
  • Ensure that necessary bids, quotes or proposals are obtained for purchases in accordance with competitive bidding statutes and the Village’s purchasing policy.

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