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Audit Objective

Determine whether claims were adequately documented, for appropriate purposes and properly audited and approved prior to payment.

Key Findings

• The Board did not audit claims before approving payments.
• Of 166 claim vouchers reviewed, totaling $783,400, the Supervisor paid $124,000 in claims (16 percent) that were either not presented to the Board or improperly paid prior to Board approval.
• Eleven claims totaling $10,500 lacked adequate supporting documentation and seven claims for $4,100 were paid twice.
• The Board did not ensure that procurements of commodities, goods and services totaling $172,000 complied with bidding requirements and/or the Town’s procurement policy.

Key Recommendations

• Perform a thorough and deliberate audit of claims and ensure each claim is adequately supported before approving it for payment.
• Update the resolution authorizing advance payment of claims so that only claims allowed by law are paid prior to Board audit.
• Ensure that Town personnel involved in the procurement process are aware of, and comply with, competitive bidding statutes and the Town’s procurement policy.

Town officials agreed with our recommendations and indicated they planned to take corrective action.