Determine whether the Board adequately monitored cash receipts and disbursements.
The Board did not adequately monitor cash receipts and disbursements.
- Sufficient compensating controls were not implemented to minimize the risks associated with the lack of segregation of the Clerk-Treasurer’s duties.
- The Clerk-Treasurer collected, deposited and recorded cash receipts and prepared and signed checks without adequate review or approval by the Mayor or Board.
- The Board did not receive or review bank statements or canceled check images to help minimize the risk of unauthorized transactions or other errors or irregularities occurring and remaining undetected.
- Proper annual audits of the Clerk-Treasurer’s records were not performed.
- Establish sufficient compensating controls, including periodically reviewing bank statements, canceled check images and bank reconciliations prepared by the Clerk-Treasurer.
- Perform, or contract for, an annual audit of the Clerk-Treasurer’s records.
Village officials generally agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.