Purpose of Audit

The purpose of our audit was to examine the Town’s internal controls over garbage bag inventory and receipts for the period January 1, 2012 through June 30, 2016.

Background

The Town of Thurman is located in Warren County and has a population of approximately 1,200. The Town, which operates a transfer station, is governed by an elected five-member Town Board. In 2015, the Town reported revenue of $15,954 from transfer station charges.

Key Findings

• Collections from garbage bags sold at the transfer stations were not remitted in a timely manner to the Town Clerk.
• Garbage bags provided to the transfer station are not adequately secured during the hours of operation and are stored in an open box on a table at the transfer station.

Key Recommendations

• Adopt written policies and procedures that include collection procedures for recording and remitting collections received at the transfer station to ensure all cash receipts are properly accounted for and remitted to the Supervisor’s bookkeeper or Town Clerk intact and in a timely manner.
• Secure all inventory of bags, maintain and review monthly inventory records and perform periodic audits of inventory.