Purpose of Audit

The purpose of our audit was to review selected cash receipts processes for the period January 1, 2011, to November 15, 2012.

Background

The City of Oneonta has approximately 14,000 residents and is located within Otsego County in central New York. The eight-member Common Council is the City’s legislative branch. The Mayor serves as the head of City government. The City collected revenues totaling approximately $25 million in 2012 from sources including real property taxes, sales taxes distributed by the County, and State and Federal aid, and departmental revenues. The Department of Public Transportation collected fees totaling approximately $700,000 for bus fares, passes and advertising sales. The Water Department collected fees for water quality tests totaling approximately $36,000 in 2012.

Key Finding

• We audited certain moneys collected by four of the seven departments within the City responsible for collecting and/or depositing City moneys: the Finance Office, Public Transportation Office, Water Department, and the City Clerk’s Office. Except for minor discrepancies, which we discussed with City officials, we determined that cash receipts collected by the Finance and City Clerk’s Offices were adequately accounted for. However, unless City officials improve their recordkeeping practices, the risk will remain increased that all moneys due to the City will not be received, recorded and deposited properly.

Key Recommendations

• Require that the Director develop procedures to ensure that departments maintain adequate deposit information and accounting software reports/access so that all moneys are properly recorded and deposited.
• Require that each department provide sufficient details to the Director to support departmental receipts to ensure that all moneys received are properly recorded and deposited.