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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 Sodus – Board Oversight and Claims Audit (2012M-42)


Released: July 13, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the Board’s oversight activities and the established internal controls over the Village’s financial operations for the period June 1, 2009, to November 4, 2011.

Background

The Village of Sodus is located in Wayne County. The Village is governed by an elected Board of Trustees which is comprised of a Mayor and four Trustees, all of whom are elected for four-year terms. The budget for the 2010-11 fiscal year was $819,139 for the general fund and $533,670 and $394,219 for the water and sewer funds, respectively.

Key Findings

  • The Board has not established, or reviewed and updated, policies as required by law and sound business practices.
  • The Board did not adopt structurally balanced budgets or require the Clerk-Treasurer to provide timely monthly financial reports to properly monitor the Village’s fiscal condition.
  • The Board procured an annual audit of the Clerk-Treasurer’s records and reports. However, they failed to ensure the timely receipt of the report and did not implement adequate corrective action to address the external auditor’s repeated recommendations.
  • The Board did not segregate the Clerk-Treasurer’s duties or institute compensating controls, where necessary.
  • The Board did not audit all claims and ensure that all payments were supported by adequate documentation and were in compliance with the Village’s procurement policy.

Key Recommendations

  • Periodically review, and revise as necessary, Village policies to ensure they continue to adequately address the Village’s needs, the Board’s intentions, and applicable legal requirements.
  • Establish a policy and develop procedures related to the budgeting process. Take a more active role in managing the Village’s financial operations.
  • Follow up on the timely issuance of its external audit reports, thoroughly review the annual audit report and management letter and develop and implement a corrective action plan to timely address significant deficiencies.
  • Evaluate the Clerk-Treasurer’s duties and, where practicable, assign duties and responsibilities to provide for proper internal controls.
  • Conduct a thorough and deliberate audit of the claims for payment against the Village, before they are paid.

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