August 12, 2010
DiNapoli's Office Completes Audit of Village of Warwick
An audit by New York State Comptroller Thomas P. DiNapoli found weaknesses in the Village of Warwick’s internal controls over claims processing, procurement and justice court funds, mainly due to the lack of existing and/or effective policies and procedures.
“My office’s audits of local governments improve their financial management practices,” DiNapoli said. “These audits are tools for local officials to make sure proper policies and procedures are in place to protect taxpayer dollars and provide the best possible service these taxpayer dollars can deliver. The Village of Warwick needs to make some changes to prevent abuses from taking place in the future.”
DiNapoli’s auditors found that the board did establish procedures to ensure that claims were audited prior to payment. However, the procedures were not always effective. DiNapoli’s auditor’s reviewed all 104 claims authorized for payment on March 15, 2010, totaling $332,170 and found that the trustees did not audit 43 claims totaling $113,960 prior to payment.
In addition, although the board had adopted a purchasing policy, it was not adequate. The policy did not require the use of competition or provide proper and detailed guidance for village employees when procuring professional services.
Finally, DiNapoli’s auditors noted that the board failed to develop policies and procedures for processing cash receipts. As a result, the clerk did not have clear guidelines on performing her duties and did not always deposit receipts within 72 hours as required by law.
Officials generally agreed with the audit’s findings. A full copy of the audit can be found here: http://www.osc.state.ny.us/localgov/audits/villages/2010/warwick.pdf