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Audit Objective

Determine whether the Town Board (Board) provided adequate oversight over financial activity and ensured receipts were deposited and disbursements were supported and authorized.

Key Findings

• The Board did not establish compensating controls to help oversee the former Supervisor’s work.
• Our tests of check disbursements totaling $1.4 million disclosed three payments totaling $36,380 that did not contain adequate support. In addition, one employee was overpaid $1,100 and detailed time records were not maintained to support $1,922 in hourly wages paid to another employee.
• The Board did not properly authorize health insurance benefits averaging $183,000 annually for elected officials in 2016 and 2017.

Key Recommendations

• Segregate the Supervisor’s financial duties or establish sufficient compensating controls to provide oversight.
• Ensure that claims are retained and include proper supporting documentation before authorizing payment.
• Authorize all fringe benefits provided to all officials and employees.

Town officials agreed with our recommendations and indicated they plan to initiate corrective action.

1 Refer to our prior audit report, Town of Frankfort – Supervisor’s Fiscal Responsibilities (2017M-192), issued in 2017.

2 The former Supervisor and other prior supervisors