Purpose of Audit

The purpose of our audit was to review selected financial activities for the period January 1, 2011, through October 19, 2012.

Background

The Town of Callicoon is located in Sullivan County. The Town is governed by an elected five-member Town Board comprising the Town Supervisor and four Board members. The Town’s 2012 adopted budget totaled approximately $2.3 million.

Key Findings

• The Supervisor allows the bookkeeper to perform most aspects of the functions relating to the receipt and disbursement of moneys without providing sufficient oversight of her duties.
• Because the Board had not defined the rate or percentage of health insurance premiums that retirees must pay for their continuing health insurance coverage, we were unable to determine whether the amounts paid by the retirees were correct.

Key Recommendations

• Segregate the incompatible financial duties performed by the bookkeeper, or provide additional oversight such as ensuring cancelled checks are for authorized purposes.
• Define the rate or percentage of health insurance premiums that retirees must pay for their continuing health insurance coverage.