Purpose of Audit

The purpose of our audit was to determine whether Town officials accurately compensated employees and whether amounts withheld and paid for employee benefits were accurate for the period January 1, 2016 through October 31, 2017.

Background

The Town of Shandaken is located in Ulster County. The Town is governed by an elected five-member Town Board. The Town has approximately 3,100 residents, and 2017 budgeted appropriations totaled approximately $4.8 million.

Key Findings

• Town officials overpaid health insurance buyout incentives to two employees by more than $4,900 and underpaid incentives to two employees by $1,680 during the audit period. Also, Town officials did not withhold employee contributions for health insurance coverage. As a result, during the audit period, 11 employees were undercharged by more than $4,700, and seven employees were overcharged by $724.
• A former employee who retired in 2017 received, used and was paid for leave time to which she was not entitled, valued at $1,842.

Key Recommendations

• Develop and implement procedures to ensure employee salaries are correctly paid and the amounts withheld and paid for employee benefits are accurate and seek recovery of inappropriate payments.
• Periodically review accrued leave time for accuracy.