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Audit Objective

Determine whether the Town of Danby (Town) Clerk recorded, deposited, remitted and reported collections in a timely and accurate manner.

Key Findings

Tax collections were missing and not deposited timely or intact and were not remitted to appropriate parties in a timely manner. Although the Clerks reported the Clerk fees that were recorded, they did not properly deposit and remit all collections to the appropriate parties in a timely and accurate manner.

The Clerks:

• Did not identify tax collection account errors totaling $64,959 and could not account for approximately $1,000 in cash from tax collections.
• Did not maintain adequate supporting documentation for collections.
• Did not complete monthly bank reconciliations and accountabilities.

The Board did not perform an annual audit of the Clerk’s records.

Key Recommendations

• Make intact and timely deposits.
• Secure collections prior to being deposited.
• Maintain all records, books and papers including the duplicate cash receipts and required source documents.
• Prepare monthly bank reconciliations and accountabilities.
• Perform, or obtain, an annual audit of the Clerk’s records.

Town officials generally agreed with our findings and indicated they plan to initiate corrective action.