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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

Village of Andover – Water and Electric Cash Receipts (2019M-152)

Released: October 25, 2019 -- [read complete report - pdf]

Audit Objective

Determine whether water and electric cash receipts were recorded and deposited in a timely and accurate manner.

Key Findings

  • We reviewed 1,963 water and electric cash receipts totaling $184,500 and found that they were properly recorded and deposited in a timely manner. However, the Board has not established adequate controls over these receipts.
  • Village officials did not adequately segregate the Deputy Clerk-Treasurer’s (Deputy) water and electric financial duties or provide oversight of her work. As a result, the Deputy had complete control over water and electric cash receipts and was able to make adjustments to customer accounts and delete transactions without proper oversight.

Key Recommendation

  • Segregate the Deputy’s financial duties or establish compensating controls, such as providing additional oversight of the Deputy’s work.

Village officials generally agreed with our recommendations and indicated that they have initiated or planned to initiate corrective action. Appendix B includes our comment on an issue raised in the Village’s response.

Background

The Village of Andover (Village) is located in Allegany County. The Village is governed by an elected Board of Trustees (Board) composed of four trustees and the Mayor. The Board is responsible for the general management and control of finances and safeguarding assets.

The Mayor is the chief executive officer and appoints all non-elected officers subject to the Board’s approval. The Clerk-Treasurer (Treasurer) is the chief financial officer and is responsible for collecting and depositing all funds, maintaining accounting records and preparing financial reports. The Deputy assists the Treasurer with these duties and is primarily responsible for billing, collecting and depositing water rents and electric charges.

Quick Facts
Population1,042
Water and Electric Customers570
2018-19 Budgeted Water Rents$190,000
2018-19 Budgeted Electric Charges$498,000

Audit Period

June 1, 2016 – June 13, 2019


Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.ny.gov
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236