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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 Hillburn – Internal Controls Over Cash Receipts and Disbursements (2013M-392)


Released: April 18, 2014 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the Village’s cash receipt and disbursement practices for the period of June 1, 2012 through October 24, 2013.

Background

The Village of Hillburn is located in the Town of Ramapo in Rockland County and is governed by a three-member Board of Trustees. Its population is approximately 950 residents. General fund appropriations for the 2012-13 fiscal year totaled approximately $1.5 million.

Key Findings

  • The Board has not developed policies and procedures for cash receipt and disbursement duties, and the Clerk-Treasurer’s duties are not segregated.
  • Bank reconciliations are performed without oversight.
  • Duplicate pre-numbered receipts were not issued for all transactions, and the youth center does not have a cash drawer, safe or lockbox.
  • Not all claims were audited by the entire Board prior to payment, as required.

Key Recommendations

  • Adopt written policies and procedures to provide guidance on cash receipt and disbursement practices, including segregating incompatible duties where possible.
  • Review bank reconciliations to ensure they are performed properly and that discrepancies are investigated and corrected immediately.
  • Use pre-numbered receipts for all collections and ensure that cash assets are secured until they are deposited.
  • All claims should be audited before payment.

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