Determine whether the Town of Morehouse (Town) Town Supervisor (Supervisor) maintained complete, accurate and timely financial records and reports.
The Supervisor did not maintain the Town’s accounting records and reports in a complete, accurate, up-to-date or timely manner.
- The Town’s accounting records were not reliable.
- $2,082,924 in revenues and $673,497 in disbursements were not recorded.
- Cash balances were understated by about $1.7 million as of June 30, 2021.
- Federal payroll taxes were not filed timely, resulting in interest and penalties totaling $6,520.
- The 2012 through 2020 annual update documents (AUDs) were not filed with the Office of the State Comptroller (OSC), as required.
- Bank reconciliations were not performed.
- Monthly financial reports were not prepared for and submitted to the Town Board (Board).
Because the Board did not have complete, accurate and timely financial information, its ability to monitor the Town’s financial affairs, accurately assess the Town’s financial condition and make sound financial decisions was compromised.
- Develop policies and procedures to ensure that accounting records are properly maintained.
- File annual reports as required.
- Complete bank reconciliations timely.
- Provide accurate and timely financial reports to the Board.
Town officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.