[read complete report – pdf]

Audit Objective

Determine whether the Town of Worcester (Town) Town Board (Board) effectively audited claims prior to payment.

Key Findings

The Board did not effectively audit claims prior to payment. As a result, disbursements were made for unsupported and/or improper claims and not in the best interest of the taxpayers. In our sample of 199 claims totaling $824,330, 166 claims totaling $601,662 should not have been approved for payment. For example,

• 131 claims totaling $597,410 were approved without evidence of compliance with competitive bidding requirements or the Town’s procurement policy.
• 11 claims totaling $4,009 did not have appropriate support, such as an itemized receipt or invoice.
• 23 claims had sales tax totaling $243.

Key Recommendations

• Perform a thorough and deliberate audit of claims and ensure each claim is adequately supported, for legitimate Town expenditures and complies with statutory requirements and the Town’s procurement policy before approving payment.
• Ensure that Town personnel involved in the procurement process are aware of, and comply with, statutory requirements and the Town’s procurement policy.

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