Purpose of Audit

The purpose of our audit was to evaluate the internal controls over cash disbursement for the period January 1, 2011, to July 31, 2012.

Background

The Town of North Castle is located in Westchester County. The Town Board includes four Board members and the Town Supervisor, and is the legislative body responsible for managing Town operations. The Town’s appropriations for the 2012 fiscal year were approximately $31 million.

Key Finding

• Internal controls over cash disbursement are appropriately designed and operating effectively with the exception of bank reconciliations, which have not been prepared since May 2012. Because the Town’s deposits total $26 million, the lack of bank reconciliations creates a risk that errors or fraudulent transactions could occur without detection.

Key Recommendation

• Ensure that bank reconciliations are prepared for June 2012 and months thereafter, with all reconciling items being resolved in a timely manner.