Purpose of Audit

The purpose of our audit was to determine whether employees were receiving the amount of compensation and leave accruals approved by the Board for the period January 1, 2012 through October 10, 2013.

Background

The Town of Amenia is located in Dutchess County and has a population of approximately 4,400. The Town is governed by a Town Board which comprises the Town Supervisor and four elected Board members. Budgeted expenditures for the general and highway funds for 2013 totaled approximately $1.45 million and $1.09 million, respectively.

Key Findings

Internal controls in the payroll department were generally operating effectively. We tested payroll payments for all 54 employees, including full-time, part-time, seasonal and temporary employees, to determine whether they were paid Board-approved wages. We found that employees were compensated accurately.

• However, leave accrual records were not properly maintained. We tested the leave time used by all six highway department employees for whom leave records were maintained and found minor discrepancies that we discussed with Town officials. Because the Town did not maintain leave accrual records for other employees, Town officials have no way of determining the accuracy of time for vacation, sick and personal leave accruals.

Key Recommendations

• Establish policies and procedures for tracking employee leave accruals and monitor to ensure these policies are followed.
• Determine the amount of leave each current employee is entitled to and maintain accurate up-to-date leave records going forward.