Purpose of Audit

The purpose of our audit was to review the Board’s oversight of Town assets and the Clerk’s operations for the period January 1, 2012 through February 28, 2014.

Background

The Town of Dansville is located in Steuben County and had a population of 1,842 as of the 2010 census. The five-member Town Board is the legislative body responsible for the general management and control of the Town’s financial and operational affairs. The Town’s 2014 budgeted appropriations are approximately $1.1 million.

Key Findings

• The Board has not provided adequate oversight to safeguard Town assets. Specifically, the Board has not adopted adequate policies to ensure Town assets are safeguarded and used only for necessary and authorized Town purposes.
• The Board appointed the Clerk to act as the Supervisor’s bookkeeper, which circumvents legally established controls between the Clerk’s and the Supervisor’s duties.
• The Board did not audit, or cause to be audited, the records of the Supervisor, Clerk or Tax Collector, which would have helped to detect any discrepancies. Our tests of cash receipts and disbursements for both the Supervisor and Clerk determined that they were properly recorded and reported.
• The Board has not formally developed or adopted a comprehensive, multiyear financial and capital plan, and it did not have any other mechanism in place to adequately address the Town’s long-term operational and capital needs.

Key Recommendations

• Adopt adequate written policies and procedures establishing a framework for an effective system of internal controls.
• Ensure that the incompatible duties of the Town Clerk and Supervisor’s bookkeeper are not performed by the same individual.
• Annually audit or contract for an audit of the books and records of all departments that receive and disburse Town funds.
• Develop and adopt a comprehensive multiyear financial and capital plan to establish the goals and objectives for funding long-term operating and capital needs. The plan should be monitored and updated on an ongoing basis.