Audit Objective

Determine whether the City of Amsterdam (City) Recreation Director (Director) maintained adequate collection records.

Key Findings

The Director maintained limited and inadequate collection records and staff did not issue receipts for collections or maintain inventory records for the beverage events. As a result, there is a substantial risk that not all collections were remitted to the Treasurer’s office. For example:

• The total projected fees for the six-week summer camp program were $12,014; only $5,213 was collected, resulting in a projected revenue shortage of $6,801 for the summer camp.
• $4,303 was deposited from sales during the eight-hour Oktoberfest but officials did not maintain any support for the number of beverages sold. In addition, cash from the sales was periodically placed in a vehicle’s glove compartment until it was brought to the Director’s home, over the weekend, before being deposited.
• $895 in cash was remitted for the four-hour Craft Beer Fest the day of the event. Tickets cost $45 to drink beer and $5 for designated drivers. Officials could not support the number of tickets sold for the event.
• $286 was remitted for the 10-hour Italiafest and wine tasting with no record of how many people attended the event. However, based on the ticket cost of $10 per person, about 28 people paid to attend the day of this event.

Key Recommendations

• Ensure adequate records are maintained for all collections and maintain inventory records for the beverage events.

City officials generally agreed with our recommendations and indicated they planned to initiate corrective action.