Purpose of Audit

The purpose of our audit was to review the Dover Ridge sewer and water districts’ financial operations for the period January 1, 2015 through May 19, 2016.

Background

The Town of Beekman is located in Dutchess County and has approximately 15,000 residents. The Town is governed by an elected five-member Town Board. The Town took ownership of a private sewer system and a private water system, both abandoned in 1997, from which it established the Dover Ridge sewer and water districts.

Key Findings

• The general fund has been subsidizing the Districts, and as a result, the sewer and water funds owe the general fund $100,020 and $13,745, respectively.
• All amounts billed could not be traced to deposits, all expenditures could not be explained and bank reconciliations were not performed in a timely manner.
• We found inadequate segregation of duties in the Districts’ financial activities with no compensating controls in place.

Key Recommendations

• Ensure that all interfund loans are repaid in a timely manner.
• Require the Town Comptroller to report amounts billed and to perform a monthly accountability.
• Implement compensating controls to address the lack of segregation of duties within the Districts’ financial activities.