Purpose of Audit

The purpose of our audit was to examine the Village’s claims processing procedures for the period March 1, 2015 through May 31, 2016.

Background

The Village of Lindenhurst is located in the Town of Babylon, Suffolk County, and has approximately 27,000 residents. The Village is governed by an elected five-member Board of Trustees. General fund budgeted appropriations for the 2016-17 fiscal year total approximately $12.6 million.

Key Findings

• The Board delegated its claims auditing responsibility to the Clerk-Treasurer.
• Not all claims contained adequate supporting documentation.
• Not all purchase orders were dated prior to receipt of related invoices.

Key Recommendations

• Ensure that the entire Board conducts a thorough and deliberate audit of all Village claims or formally appoint a claims auditor or a committee to fulfill the claims audit function.
• Ensure that each claim contains sufficient supporting documentation.
• Obtain approved purchase orders in advance of any purchase.