Purpose of Audit

The purpose of our audit was to review the Supervisor’s financial records and reports for the period January 1, 2009 through February 3, 2015.

Background

The Town of Marilla is located in Erie County and has a population of approximately 5,300. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2015 total approximately $2.8 million.

Key Findings

• The Supervisor relied on a certified public accounting firm (CPA) to maintain the accounting records without oversight, resulting in inaccurate records, and therefore provided the Board with reports that were not accurate.
• The CPA erroneously commingled debt and grant proceeds for capital projects with the Town’s operating funds.
• The Board did not annually audit, or cause to be audited, the Supervisor’s records, as required by law.

Key Recommendations

• Provide monthly financial reports that include necessary information in a more useful format, including summarized cash balances for all funds at month end.
• Identify all money improperly residing in the operating funds and return it to the debt service fund or capital projects fund, as required.
• Perform an annual audit of the Supervisor’s records.