Determine whether the Town of Machias (Town) Town Supervisor (Supervisor) adequately performs his financial duties.
The Supervisor did not adequately perform his financial duties and cannot provide support for almost $1.6 million in interfund loans.
Although interfund loans must be repaid by the close of each fiscal year, interfund loans have grown from $246,280 in 2015 to almost $1.6 million as of December 31, 2019. The Supervisor also did not:
- Provide adequate oversight of the bookkeeper.
- Provide detailed monthly financial reports to the Board.
- Review monthly bank reconciliations.
- Prepare and file the annual financial reports for 2019 and 2020 with the Office of the State Comptroller (OSC) in a timely manner.
The Supervisor should:
- Periodically review the work of the bookkeeper to ensure the records and reports are adequately maintained.
- Provide monthly financial reports to the Board, which include a detail of money received and disbursed.
- Ensure appropriate bank reconciliations are completed in a timely manner and review the reconciliations.
- Prepare and file the annual financial report with OSC as required.
Town officials generally agreed with our recommendations and indicated they are taking corrective action. Appendix B includes our comments in response to issues raised in the Town’s response.