[read complete report – pdf]

Audit Objective

Determine whether the Town of Groton (Town) officials adequately safeguarded and accounted for Highway Department (Department) assets.

Key Findings

Town officials did not adequately safeguard and account for Department assets.

• Officials did not maintain an up-to-date inventory, perform periodic physical inventories, obtain Board approval for all disposals or dispose of Department assets in accordance with the Town’s capital asset policy.
• Sixteen assets with costs totaling $35,701 could not be located.

Key Recommendations

• Update the capital asset policy to include procedures for controls over assets costing less than $5,000, procedures for adding new assets and necessary detailed information to properly identify Department assets.
• Conduct periodic physical inventories.
• Ensure the bookkeeper follows the requirements set forth in the Town’s capital asset policy and procedures for the sale, transfer or disposition of unused assets.

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