Town of Webb - Financial Oversight and Ambulance Services (2018M-161)

Issued Date
November 30, 2018

[read complete report - pdf]

Audit Objective

Determine whether the Board:

  • Effectively managed financial operations.
  • Ensured that ambulance services were provided in accordance with applicable laws.

Key Findings

  • The Board has accumulated excessive fund balances in four operating funds. From 2013 through 2017, unrestricted fund balances increased by nearly 100 to 200 percent.
  • The Board has not adequately segregated cash disbursement duties or implemented compensating controls.
  • The Board allowed a third-party ambulance company to retain and use all fees collected for ambulance services, which is not authorized by law.1

Key Recommendations

  • Develop and adopt budgets with realistic estimates of revenues and expenditures based on historical trends or other known factors.
  • Ensure compensating controls are implemented to address the lack of segregation of duties within the disbursement process.
  • Ensure that all ambulance service fees collected are remitted to the Town.

Town officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.

1 New York State General Municipal Law, Section 122-b