Purpose of Audit

The purpose of our audit was to review the Board’s oversight of selected financial activities for the period January 1, 2011, through June 4, 2012.

Background

The Town of Otselic is located in Chenango County with a population of 1,054 residents. The Town is governed by a Town Board comprising the elected Town Supervisor and four elected Board members. The Town’s 2012 budgeted appropriations were approximately $450,000.

Key Finding

• The Board and Supervisor did not meet their fiscal oversight responsibilities. Nearly every aspect of the Town’s financial operations – including maintaining accounting records and reports, collecting community development loans, preparing and collecting water billings, performing the cash receipt and disbursement functions, and auditing claims – was weak and highly susceptible to errors and irregularities occurring without detection.

Key Recommendations

• Prepare complete and accurate financial records and reports.
• Ensure that a complete list of all community development moneys is prepared, and procedures for outstanding loan collection are enforced.
• Establish policies and procedures to ensure that all moneys paid to the Town are recorded and deposited intact and in a timely manner.
• Ensure that all disbursements are for approved Town purposes and based on a supported and approved claim that has been properly audited by the Board.