Purpose of Audit

The purpose of our audit was to review the Center’s financial activity and to assess the Board’s oversight of the Center for the period of January 1, 2011, to March 31, 2013.

Background

The Town of Fishkill located in Dutchess County. The Town Board is the legislative body responsible for managing Town operations. The Recreation Department reported revenues for the years 2011 and 2012 were $315,222 and $383,957, respectively.

Key Findings

• Although the former Director properly accounted for some Department funds, she did not properly account for funds associated with the Center’s operations. The day before the former Director officially retired, $21,526 of unsecured cash ($19,732) and checks ($1,794) was found in a Department file cabinet. Of this amount, $4,003, was in a sealed envelope and appeared to be ready to be remitted to the Town Comptroller. There was no indication that the remaining $17,523 would be remitted to the Town Comptroller.
• The former Director opened an unauthorized bank account in 2004 which the Board was not aware of, deposited Center funds in the account and wrote questionable checks from that account for Center activities.
• The former Director paid for overnight trips for Center members with her personal credit card and subsequently wrote checks to her husband for reimbursement of the payments, for which the former Director’s husband was overpaid approximately $3,743. The former Director and her husband also did not pay $4,657 for the trips which they participated in.
• The former Director did not issue press-numbered receipts or properly account for moneys received.
• Payments were made without supporting documentation, and items were purchased that do not appear to have been used for Center activities.

Key Recommendations

• Review all reimbursements made to the former Director and her husband and take steps to recover any overpayment of funds.
• Require that the Department maintain sufficient records of all receipts and disbursements and all Department financial transactions be conducted through the Town Comptroller.
• Ensure that all money collected is properly receipted and remitted to the Town Comptroller in a timely manner.
• Review all checks that were made payable to cash and take steps to recover any funds not used for legitimate Center purpose.