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NYS Comptroller

THOMAS P. DiNAPOLI

Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Village of East Williston – Internal Controls Over Selected Financial Operations (2012M-21)


Released: June 1, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was assess the water fund’s financial condition and internal controls over selected operations for the period June 1, 2009, to November 30, 2010.

Background

The Village of East Williston (Village) is located in the Town of Hempstead in Nassau County. The Village is governed by an elected Board of Trustees (Board) which consists of a Mayor, a Deputy Mayor, and three Trustees. The Village provides residents with various services, including water service.

Key Findings

  • The Village’s water fund did not repay interfund advances of $226,024 transferred from the general fund by the close of the fiscal year in which they were made, as required by General Municipal Law. The inability of the water fund to repay loans to the general fund could adversely impact the general fund’s financial condition.
  • Of the 100 cash receipts tested, the Deputy Clerk did not issue receipts for 95 payments totaling $59,587 for real property taxes, water rents, and miscellaneous items, so Village officials have no assurance that all monies received were deposited in Village accounts.
  • The Board did not audit and approve 23 of 24 claims reviewed, totaling $20,010, before paying them, or adequately safeguard Village computerized systems and data.

Key Recommendations

  • The Board should monitor its plan to repay the outstanding interfund advances in the 2011-12 fiscal year. If repayment cannot be made in the near term, the general fund balance will be reduced by the amount owed.
  • The Deputy Clerk should issue sequentially-numbered receipts to support the collection of all money.
  • The Treasurer should ensure that all claims have been audited and certified by the Board before paying them.
  • The Board should adopt a disaster recovery plan to minimize the loss of computer data and to guide the implementation of data recovery procedures.

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