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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 Dresden – Clerk-Treasurer’s Duties and Multiyear Financial Planning (2013M-3)


Released: April 26, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the Board’s oversight of the Village’s financial activities for the period June 1, 2010, to November 15, 2012.

Background

The Village of Dresden is located in the Town of Torrey, in Yates County, and has a population of 308. The Village is governed by an elected Board of Trustees which comprises a Mayor, who is the chief executive officer, and two Trustees. Budgeted appropriations for the 2012-13 fiscal year were $287,914 for the general fund and $140,900 for the water fund.

Key Findings

  • The Board did not segregate the Clerk-Treasurer’s duties or provide additional oversight as a compensating control, and did not properly plan or monitor the Village’s finances. The Board did not institute compensating controls and did not audit the Clerk-Treasurer’s records as required. Although our tests of financial transactions found no significant discrepancies, these control weaknesses place the Village at an increased risk of errors and irregularities.
  • The Board did not develop a long-term financial plan or adequately monitor the Village’s water fund. As a result, the water fund’s year-end fund balance increased from $76,272 to $194,688 from fiscal years 2007-08 to 2011-12, and is now equal to 168 percent of annual expenditures. Village officials have not addressed the intended use of these excess funds and have not reviewed water rates to assess their reasonableness.

Key Recommendations

  • Implement policies and procedures that incorporate compensating controls to routinely monitor and review the work of the Clerk-Treasurer as a means to mitigate the risks associated with the lack of segregation of duties. Document in the Board minutes the results of the annual audit of the Clerk-Treasurer’s records.
  • Establish a multiyear financial plan to better manage the Village’s finances, and monitor and update the plan on an ongoing basis. Review the Village’s water rates to assess their reasonableness.

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