Audit Objective
Determine whether the Town of Stony Creek (Town) Supervisor maintained accurate accounting records and reports to allow the Town Board (Board) to effectively manage the Town’s financial operations.
Key Findings
The Supervisor did not maintain accurate accounting records and reports, and the Board could improve its oversight of financial operations. The Supervisor did not:
- Ensure accurate accounting records were maintained.
- Provide bank statements or canceled checks to the Board and ensure cash accounts were independently reconciled monthly.
- Provide adequate monthly reports or ensure the annual update document (AUD) was accurate.
Without complete and accurate financial reports, the Board was not aware of significant deficiencies with the Town’s accounting records, that the Town’s general fund balance was overstated by $316,272 as of December 31, 2021, and cannot exercise adequate oversight of financial operations.
Key Recommendations
- Provide adequate oversight of the Town’s financial operations, maintain accurate accounting records and conduct required annual audits.
- Ensure bank reconciliations are independently prepared or reviewed.
Town officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate, corrective action.