Purpose of Audit

The purpose of our audit was to determine if the accounting for capital projects was accurate and complete and if internal controls over cottage rental collections were adequate and operating effectively for the period January 1, 2013 through August 31, 2014.

Background

The Town of Inlet is located in Hamilton County and has a population of approximately 330. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2015 total approximately $2.16 million.

Key Findings

• The bookkeeper accounted for all waste water capital project activity in the sewer operating fund instead of in the capital projects fund.
• The Board did not establish an adequate receipt process to ensure that the Clerk recorded and deposited money collected for cottage rentals in an accurate and timely manner.

Key Recommendations

• Ensure that the bookkeeper properly accounts for the waste water treatment project separately from the sewer operating fund.
• Ensure that adequate controls are put in place with the computerized accounting system and that monthly reports are submitted to the Supervisor which accurately reflect all cottage rental revenues received during the month.