Determine whether the Village of Waterford (Village) Board (Board) provided adequate oversight of financial operations.
The Board did not provide adequate oversight of financial operations. Specifically, the Board did not:
- Establish compensating controls to address the lack of segregation of the Treasurer’s duties.
- Request or receive adequate monthly reports from the Treasurer to adequately monitor operations, or ensure bank reconciliations were properly prepared, retained and reviewed.
- Ensure all claims paid in advance were for allowable purposes, audit claims paid in advance of audit at the next regular Board meeting, or ensure annual audits were conducted in a timely manner.
- Establish sufficient compensating controls, including periodically reviewing bank statements and properly prepared bank reconciliations.
- Ensure the Treasurer provides adequate monthly financial reports to the Board.
- Ensure the Treasurer pays only those claims before Board audit and approval that are allowed to be paid in advance and audit such claims at the next regular Board meeting.
Except as specified in Appendix A, Village officials generally agreed with our recommendations and indicated they planned to take corrective action. Appendix B includes our comment on issues raised in the Village’s response letter.