Audit Objective 

Determine whether the Town of Harpersfield (Town) Town Board (Board) properly audited claims.

Key Findings 

The Board did not properly audit claims to determine whether the claims represented actual and necessary expenditures and whether proposed payments were for valid purposes.

Of the 428 claims totaling $478,628 that were paid during the audit period, we reviewed 124 claims totaling $400,604 and determined that: 

• The Board did not properly audit individual claim packets and supporting documentation (e.g., invoices and receipts). Rather, the Board reviewed only an abstract of unaudited claims each month and approved the abstracts for payment. However, the abstracts did not contain sufficient details or itemization for the Board to make the necessary determinations required for a proper claims audit.
• 30 claims totaling $69,281 were improperly paid before Board approval.
• 22 claims were paid that included sales tax totaling $460.

Without a proper claims audit, the Town has an increased risk that it could make improper payments.

Key Recommendations 

The audit report includes six recommendations, which, if implemented, will improve the Town’s claims audit process.

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