Determine whether Yates County Industrial Development Agency (YCIDA) officials properly recorded, supported and reported cash receipts and disbursements, including payroll.
Although we did not find any significant errors in how cash receipts and disbursements were recorded and reported, we found the following weaknesses:
- The Board did not require pre-numbered duplicate receipts or cancelled checks to facilitate the review of accounting records and reports.
- Controls over receipts and disbursements would be strengthened by adding mitigating controls.
- A privately contracted payroll vendor has access to the YCIDA’s bank account to withdraw funds for payroll and processing fees.
- The Board should adopt cash receipts and disbursement policies.
- Ensure that duties are adequately segregated or implement mitigating controls.
- Discontinue allowing the payroll vendor to access the bank accounts.
IDA officials agreed with our recommendations and have indicated they plan to initiate corrective action.