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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 Hoosick Falls – Internal Controls Over Selected Operations (2013M-1)


Released: March 29, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the Village’s financial and information technology (IT) operations for the period June 1, 2010, to May 31, 2012.

Background

The Village of Hoosick Falls is located in the Town of Hoosick in Rensselaer County. The Village is governed by a Village Board, which comprises a Mayor and six Trustees. The Village’s budgeted appropriations for 2012-13 are approximately $3.2 million.

Key Findings

  • The Board has not adopted policies establishing responsibilities and duties for the Treasurer for handling cash and maintaining accounting records. As a result, the Treasurer filed the Village’s annual financial report an average of 221 days past the due date for the fiscal years ending in 2008 through 2011.
  • The Board has not implemented compensating controls to address the lack of segregation of duties performed by the Treasurer.
  • Village officials do not review payroll in a timely manner, and there is no certification of payroll prior to printing checks.
  • There was no evidence that the Board conducted an audit of claims.
  • Although fuel consumption records were kept for specific vehicles, there were no perpetual inventory records or physical inventories completed.
  • Three employees have access to all financial software functions enabling them to record and change information, and prepare and print checks.
  • The Board has not developed a formal disaster recovery plan.

Key Recommendations

  • Prepare and file the Village’s annual financial report with the Office of the State Comptroller in a timely manner.
  • Implement compensating controls to reduce the risks associated with the lack of segregation of duties performed by the Treasurer.
  • Certify each payroll prior to the Treasurer preparing pay checks.
  • Perform a thorough claims audit and approving claims before the Treasurer processes them for payment.
  • Maintain perpetual inventory records that identify the beginning inventory, and the quantities of fuel purchased and dispensed. Maintain fuel consumption records.
  • Assign financial software access rights to users of the Village’s financial software based on their job descriptions while ensuring they cannot be involved in multiple aspects of financial transactions.
  • Establish a formal disaster recovery plan.

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