[read complete report - pdf]

Audit Objective

Determine whether Town officials accurately maintained employees’ leave accrual records.

Key Findings

• The Town lacked adequate procedures to ensure employees’ leave accrual records were accurately maintained.
• We reviewed 15 employees’ leave accrual records during the audit period and found that none were accurately maintained. As a result, six employees were paid for 110.5 hours of leave time to which they were not entitled, resulting in overpayments totaling $2,288.
• We found that, as of May 31, 2019, the 15 employees’ leave accrual balances were overstated by 701.75 hours, valued at $15,253 and understated by 86.5 hours, valued at $1,484.

Key Recommendations

• Implement procedures to ensure employees’ leave accrual records are accurately maintained.
• Direct the Town’s legal counsel to review the identified overpayments and take appropriate action to recover those funds.
• Ensure the errors in the leave accrual records, as identified in this report, are corrected.

Town officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.