Purpose of Audit

The purpose of our audit was to review internal controls over selected Village operations for the period of June 1, 2011 through December 31, 2012.

Background

The Village of Valley Stream is located in the Town of Hempstead in Nassau County and has approximately 36,000 residents. The Village is governed by an elected five-member Board of Trustees. Its general fund expenditures for the 2011-12 fiscal year were $35.9 million.

Key Findings

• Weaknesses exist in the cash collection procedures in the Recreation Department, Highway Department, Clerk’s Office and Library.
• Neither the Village Board nor the Library Board audits or approves claims for payment.
• Checks are signed with facsimile signatures of the Mayor and a Village Trustee, with neither official retaining custody of the signature file or being present during the affixing of the signatures.

Key Recommendations

• Adopt written policies and implement written procedures for the acceptance, handling and recording of cash receipts.
• The Village and Library Boards should audit claims and not delegate those responsibilities to the Treasurer.
• The Village Treasurer should sign all checks, and the facsimile signature file of an official that is used as a second signature should only be used in the official’s presence and should be kept in his/her possession at all times.