Purpose of Audit

The purpose of our audit was to evaluate the Town’s internal controls over recreation department cash receipts and information technology for the period February 1, 2009, to June 5, 2013.

Background

The Town of Wheatfield is located in Niagara County. The Town is governed by the Town Board, which is composed of five elected members, including the Town Supervisor and four Council members. The Town’s 2012 operating expenditures totaled approximately $11 million.

Key Findings

• The recreation director did not remit all cash collected at the concession stand, totaling $12,229 for the years 2010 through 2012 to the Supervisor.
• Disbursements were made directly out of the concession stand bank account and were not reviewed and approved by the Board, or recorded in the financial system.
• Town officials have not implemented policies and procedures over the IT system, including a computer use policy and adequate controls over computer inventory.
• Audit logs are not reviewed for inappropriate activity and the Board has not adopted a comprehensive disaster recovery plan.

Key Recommendations

• Ensure that all cash receipts are remitted to the Supervisor in a timely manner. Ensure that all concession stand cash receipts and disbursements are accounted for by the Supervisor.
• Ensure that concession stand disbursements for recreation department supplies are audited and approved by the Board prior to payment.
• Establish policies and procedures computer use and for maintaining and controlling IT inventory for all departments.
• Ensure that audit logs are maintained and periodically reviewed. Develop a disaster recovery plan to minimize the interruption of day-to-day operations in the event of a disaster.