Purpose of Audit

The purpose of our audit was to review the Recreation Department’s cash receipts for the period January 1, 2016 through April 18, 2017.

Background

The Town of Tonawanda is located in Erie County and has a population of approximately 74,000. The Town is governed by an elected five-member Town Board. Operating budget appropriations for 2017 total approximately $101 million.

Key Findings

• The Department Director did not develop procedures to segregate cash receipt duties or provide adequate oversight of the cash receipt function.
• Town officials did not review or use the point-of-sale (POS) system’s records to ensure that cash receipts were properly accounted for, recorded accurately or deposited in a timely fashion.
• The Board did not ensure that an annual audit of the Department was performed.

Key Recommendations

• Establish written procedures for cash receipts, including ensuring that cash collection and recordkeeping duties are segregated.
• Review and reconcile deposited fees using source documents such as POS system records or daily cash count sheets to ensure that all fees are accounted for, deposited and recorded.
• Require the Town Comptroller to annually audit, or retain a public accountant to audit, the Department’s books and records.