Purpose of Audit

The purpose of our audit was to evaluate the Board’s oversight of the Town’s financial operations for the period January 1, 2011, through September 27, 2012.

Background

The Town of New Lisbon is located in Otsego County and has a population of approximately 1,100 residents. The Town is governed by an elected five-member Town Board, which includes the Town Supervisor. The adopted budget for 2011 was approximately $860,000.

Key Findings

The Board did not meet the fundamental expectations of their financial oversight responsibilities.

• The Supervisor paid claims without Board audit.
• Moreover, key financial duties were performed by the Supervisor’s bookkeeper, and the Justice’s clerk without sufficient oversight from the Supervisor and Justice, respectively. The Clerk also performed all aspects of collecting and recording taxes and fees paid to her office. All of these duties were performed during 2011 without the Board performing their required annual audit.

Key Recommendations

• Audit all claims prior to their payment, unless otherwise allowed by law.
• Provide more oversight of the financial activities of the offices of the Supervisor and Justice. Conduct an annual audit of the financial records maintained by the Supervisor, Justice, and Clerk.