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Audit Objective

Determine whether the Town of Friendship (Town) Justices properly collected, recorded, deposited, disbursed and reported Justice Court (Court) collections.

Key Findings

Although the Justices properly collected, recorded and reported fines and fees, they did not deposit and disburse all fines and fees in a timely manner.

• Sixty-seven receipts totaling almost $11,000 were not deposited within 72 hours, as required.
• Monthly accountabilities were not performed.
• As of December 1, 2020 the Town Board (Board) had not completed an audit of the 2018 and 2019 records, as required. As a result, the Board’s ability to effectively monitor financial operations of the Court was diminished.

Key Recommendations

• Ensure deposits are made within 72 hours of collection, and monthly reports and disbursements are made timely.
• Prepare monthly accountabilities and investigate any discrepancies.
• Annually audit the records of the Court.

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