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Purpose of Audit

The purpose of our audit was to review the Board’s oversight of financial operations and review the Court’s financial operations from August 1, 2014 through May 31, 2016. We extended our review of Court operations back to August 1, 2013 and forward through November 30, 2016.

Background

The Village of Shoreham is located in the Town of Brookhaven in Suffolk County and has approximately 515 residents. The Village is governed by an elected five member Board of Trustees. The Village's 2016-17 fiscal year general fund budget totaled $856,449. The Court has one elected Justice and one part-time Court clerk that collected $3,435 in fines and fees during our audit period.

Key Findings

• Twenty-two 22 claims totaling $132,819 were paid without support, duplicate receipts were rarely issued and not all cash was deposited in a timely manner.
• The Board did not annually audit the Clerk-Treasurer's or Court's records and reports.
• For the Court, 70 tickets could not be accounted for, duplicate receipts were not always issued and bank reconciliations and accountability analyses were not complete or reconciled. In addition, receipts totaling $3,435 were collected and deposited but payments to the Clerk-Treasurer and reported to the Justice Court Fund (JCF) totaled $3,360.

Key Recommendations

• Conduct a thorough audit of claims before authorizing payment, require the steward and building commissioner to issue duplicate receipts and ensure that an independent reconciliation is prepared for the money received by departments and deposited by the Clerk-Treasurer.
• Annually audit the Clerk-Treasurer’s and Court’s records and reports.
• Provide receipts for all money collected and prepare bank reconciliations and accountabilities. Also submit accurate monthly reports to the JCF and corresponding remittances to the Clerk-Treasurer and investigate the missing tickets identified in this report.