[read complete report – pdf]

Audit Objective

Determine whether the Town of Fort Edward (Town) officials ensured that payroll payments and leave accruals were authorized, accurate and supported.

Key Findings

Payroll payments were not always accurate and supported, and leave accrual benefits were not clearly authorized.

• The Highway Superintendent was incorrectly paid $6,015 in overtime and call-in hours.
• Timekeeping and leave accrual records were not always clear and accurate, and timecards were unreliable because the time clock was set to an incorrect date.
• The Board did not adopt policies or implement controls to properly segregate payroll duties. Without clear written policies, procedures or other authorizations, the Town could pay its officers and employees incorrectly, or allow them to receive benefits to which they are not entitled.

Key Recommendations

• Establish written payroll policies and procedures and segregate payroll duties or establish compensating controls.
• Maintain detailed, accurate timekeeping records.
• Review leave accrual balances for accuracy and communicate leave balances to employees.

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