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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 Manorhaven – Internal Controls Over Selected Financial Operations (2011M-236)


Released: June 29, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine internal controls over selected financial operations for the period June 1, 2009, to October 31, 2010.

Background

The Village of Manorhaven is located in the Town of North Hempstead, in Nassau County. The Board, which comprises four elected Trustees and the Mayor, is responsible for the general oversight of the Village's operations. General fund operating expenditures for fiscal year end May 31, 2010 were $3.4 million.

Key Findings

  • Employees did not maintain individual timesheets and management or a Village official did not provide approval of the hours recorded onto the weekly timesheet prior to employees being paid. Additionally, the Board has not established a policy to guide the overtime process.
  • The Village did not obtain competition when procuring the services of seven of the eight professional services providers who were paid approximately $155,000 during our audit period.
  • The Village has not adequately implemented internal controls over the audit, processing, and payment of credit card claims, which resulted in payments being made without receipts supporting the charges, totaling $10,022.
  • Village officials had not adopted comprehensive IT policies and procedures regarding acceptable use standards for computers, remote access, breach notification and disaster recovery.
  • Internal controls over the Court operations were not properly designed or operating effectively to properly account for Village assets.

Key Recommendations

  • Establish and implement procedures requiring employees to complete individual time records and to help guide the overtime process.
  • Ensure procedures are in place so that contracts are awarded under the most advantageous terms and conditions.
  • Perform a thorough and deliberate audit of credit card claims prior to payment.
  • Adopt written comprehensive computer policies including acceptable computer use, remote access, breach notification and disaster recovery.
  • Ensure that Court personnel deposit monies collected within 72 hours of receipt and that proper reconciliations of the fine bank accounts are performed on a monthly basis.

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