Purpose of Audit

The purpose of our audit was to review selected Town financial operations for the period January 1, 2013 through April 3, 2014.

Background

The Town of Rosendale is located in Ulster County and has a population of approximately 6,000. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2014 totaled approximately $4.1 million.

Key Findings

• The Town’s financial accounting system was inadequate and accounting records were inaccurate and incomplete.
• Accounting records did not support the amounts reported to OSC, including more than $850,000 in fund balance variances.
• Monthly bank reconciliations were not performed.
• The Town could not account for approximately 55 percent of its water.

Key Recommendations

• Ensure that the accounting system is adequate, that all financial transactions are accurately recorded and that a general ledger is maintained.
• Ensure that all fund balance variances are investigated and reconciled.
• Ensure that bank reconciliations, including canceled check images, are reviewed.
• Investigate and correct reasons for unaccounted-for water, including inaccurate metering and significant leaks.