Audit Objective
Determine whether the City of Salamanca (City) Comptroller (Comptroller) completed timely and accurate annual and monthly financial reports.
Key Findings
The former Comptroller used improper accounting practices and did not complete timely and accurate annual and monthly financial reports. As a result, the City Common Council (Council) did not have accurate and up-to-date financial information when making significant financial decisions. We noted:
- Fiscal year-ending 2021 general fund cash was overstated by approximately $330,000.
- Annual financial reports for 2018 through 2021 were not filed until after the resignation of the former Comptroller.The longest overdue report was more than four years past its due date.
- Monthly financial reports included erroneous reporting of revenue and expenditures.
The Mayor and Council did not ensure annual reports were accurate and submitted timely. Monthly financial reports were inaccurate because the former Comptroller was using improper accounting practices that the Council did not detect.
Key Recommendations
- File the delinquent 2022 annual financial report and review the filed 2018 through 2021 reports for accuracy.
- Discontinue the improper accounting practices put in place by the former Comptroller and accurately record revenues and expenditures.
City officials agreed with our findings and indicated they would initiate corrective action.