Purpose of Audit

The purpose of our audit was to review the Authority’s internal controls over water charges for the period January 1, 2014 through June 30, 2015.

Background

The Clifton Park Water Authority is an independent public benefit corporation that was established in 1990 under New York State Public Authorities Law to acquire, construct, operate and maintain public water supply and distribution facilities for the benefit of the residents of the Towns of Clifton Park and Malta. The Authority is governed by a five-member Board of Directors, which is appointed by the Clifton Park Town Board. Budgeted appropriations for 2015 totaled approximately $5.9 million.

Key Findings

• No one independent of the billing clerk reviewed the billing registers.
• Cash collections were not deposited in a timely manner or properly secured prior to deposit.
• The administrative assistant, who was involved with the processing of financial transactions, had been granted administrative rights to the software.

Key Recommendations

• Ensure that an individual independent of the billing process reviews the billing registers and exception reports.
• Ensure that cash is deposited in a timely manner and is physically secured prior to deposit.
• Designate an individual who is not involved in the processing of financial transactions as the Authority’s billing and collection software administrator.