Purpose of Audit

The purpose of our audit was to determine if Town officials established effective controls over payroll for the period January 1, 2012 through December 31, 2013.

Background

The Town of Mooers is located in Clinton County, has a population of approximately 3,600 and is governed by an elected five-member Town Board. Budgeted appropriations for 2013 totaled approximately $1.05 million.

Key Findings

• The Board has not adopted a formal policy or implemented procedures requiring each employee to maintain a time sheet to be signed by the employee and their supervisor.
• The Supervisor’s secretary performed virtually all payroll functions without sufficient compensating controls in place.
• The Supervisor’s payroll reviews were inadequate.

Key Recommendations

• Ensure that Town employees complete and sign individual time records and that such records include supervisory approval.
• Implement compensating controls to address the lack of segregation of duties within the payroll process.
• The Supervisor should compare payroll registers to payroll source documents when certifying payrolls.