Determine whether the Village of Montgomery (Village) Board of Trustees (Board) provided adequate oversight of the Treasurer’s office financial operations.
The Board did not provide adequate oversight of the Treasurer’s financial operations. The Board did not:
- Know the Treasurer did not comply with water and sewer Village laws and codes resulting in $29,300 in penalties not being assessed.
- Implement sufficient compensating controls to minimize the risks associated with the lack of segregation of duties within the Treasurer’s office.
- Approve or authorize anyone to approve billing adjustments for water and sewer bills nor require adjustments to be documented and retained.
- Perform required annual audits. The last required audit was conducted in 2016.
The Board should:
- Ensure the Treasurer’s office complies with water and sewer Village laws and codes.
- Establish sufficient compensating controls over the segregation of incompatible duties within the Treasurer’s office.
- Ensure the required annual audit is conducted.
Village officials agreed with our recommendations and indicated they planned to initiate corrective action.