Purpose of Audit
The purpose of our audit was to review the City’s financial condition, claims processing and payroll function for the period January 1, 2013 through December 31, 2016.
The City of Glen Cove is located in Nassau County and has a population of approximately 27,200. The City is governed by an elected seven-member City Council. General fund budgeted appropriations for 2017 totaled approximately $46.7 million.
- The Council has not adopted structurally balanced budgets, having relied on nonrecurring revenues, debt and interfund transfers to balance budgets and meet normal operating expenditures.
- The City’s interfund transfers did not comply with its charter, which only authorizes transfers from surplus funds to other funds.
- The Council has not established a claims auditing policy.
- The City’s payroll clerk performed incompatible payroll duties without any oversight.
- Adopt structurally balanced budgets which finance recurring operating expenditures with recurring operating revenues.
- Ensure interfund transfers are in compliance with the City’s charter and do not exceed fund surplus amounts.
- Ensure a deliberate and thorough audit of all claims prior to payment by establishing a claims auditing policy.
- Adopt a payroll processing policy and establish procedures that adequately segregate the payroll clerk’s duties.