[read complete report - pdf]

Audit Objective

Determine whether the Town of Potter (Town) Clerk deposited, recorded, reported and remitted collections in a timely and accurate manner.

Key Findings

A former Clerk did not deposit intact (in the same amount and form as received) or record, report and remit all collections to the appropriate parties in a timely and accurate manner. We identified a cash shortage of $23,838 during this former Clerk’s tenure.

• The former Clerk did not complete monthly bank reconciliations or accountabilities, issue or properly prepare duplicate receipts or retain receipts for all collections.
• The Town Board (Board) did not annually audit the Clerk’s records, as required. The audits may have identified these discrepancies and determined the shortage.

Key Recommendations

• Consult with legal counsel and the Town’s insurance agent to recoup the missing money from the former Clerk.
• Ensure the Clerk prepares monthly bank reconciliations and accountability analyses.
• Annually audit the Clerk’s records to ensure records, deposits, reports and collections are remitted in an accurate and timely manner and the Clerk issues and retains duplicate receipts.

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