Purpose of Audit

The purpose of our audit was to assess selected financial operations for the period January 1, 2014 through April 30, 2015.

Background

The Fishers Island Ferry District is a component unit of the Town of Southold in Suffolk County. The District was created in 1947 by an act of the State Legislature, known as the Ferry District Enabling Act. The District is governed by an elected five-member Board of Commissioners. Budgeted appropriations for 2015 totaled approximately $4.5 million.

Key Findings

• Time and attendance records are not submitted by all employees, and neither employees nor managers are required to sign and certify that the hours reported on the time cards are accurate.
• The Fishers Island freight agent’s duties related to cash receipts are not adequately segregated, collections received are not reconciled to collections recorded and duplicate prenumbered receipts are not issued for cash collected.
• District officials did not ensure that goods and services were procured in compliance with statutory bidding requirements and the District’s procurement policy.

Key Recommendations

• Implement uniform timekeeping procedures that include individual employee time recording forms. The forms should provide detail about the hours employees actually work and leave accruals used and should include employee signatures and the signatures of their supervisors.
• Ensure that the duties for collecting, processing, recording and depositing cash receipts are adequately segregated or implement sufficient compensating controls such as increased management reviews and ensure that duplicate prenumbered receipts are issued for all money collected.
• Ensure that District officials adhere to the purchasing policy and competitive bid laws when purchasing goods or entering into public works contracts in excess of the thresholds established by policy or General Municipal Law.