[read complete report – pdf]

Audit Objective

Determine whether the Town of Frankfort (Town) Justices provided adequate oversight of Justice Court (Court) financial activities and ensured collections were properly deposited, reported and remitted.

Key Findings

The Justices did not provide adequate oversight of Court financial activities.

• The Justices did not prepare monthly bank reconciliations and accountabilities. As a result, former Justice Madia had a shortage of $3,593 that originated over five years ago and was not identified until after he left office.
• While the receipts we tested were generally deposited intact, former Justice Madia’s and Justice Bellino’s receipts totaling $24,366 were not deposited timely. Also, while remittances to the Town Supervisor agreed with monthly reports, 15 of 19 monthly reports for former Justice Madia and Justice Zennamo were not reported timely.
• The Court software lacked fundamental controls. As a result, court clerks could delete and modify previously recorded cash receipt transactions.

Key Recommendations

• Perform monthly bank reconciliations and accountabilities and promptly review and resolve any differences.
• Ensure deposits are made within 72 hours of collection, and monthly reports are filed timely.
• Upgrade the Court’s recordkeeping software to the most current available version.

Town officials generally agreed with our findings and indicated they plan to initiate corrective action.