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Village of Scotia – Internal Controls Over Selected Financial Operations (2012M-148)

Issued Date
January 11, 2013
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Purpose of Audit

The purpose of our audit was to review the Village’s internal controls over selected financial operations for the period June 1, 2010, to October 31, 2011.

Background

The Village of Scotia is located in the Town of Glenville in Schenectady County and has approximately 7,700 residents. The Village is governed by a Board of Trustees which comprises four elected Trustees and an elected Mayor. The Village’s budgeted appropriations for the 2011-12 fiscal year were approximately $8.3 million.

Key Findings

  • We identified weaknesses in the controls over the collection, recording, reconciliation, and enforcement of parking ticket fines.
  • The Village does not participate in the New York State Department of Motor Vehicle (DMV) Scofflaw Program for addressing unpaid violations. By participating, the Village could potentially increase its parking fine revenues by nearly $23,000.

  • The Court’s case files and bail records are not accurate and complete, and the two Justices do not maintain an accurate computerized bail list or perform monthly bank reconciliations and accountabilities. As a result, there are discrepancies between the accounting records maintained for bail, the Court’s manual check register, and the computerized court case records. Further, neither the manual check register nor the computerized accounting records agrees with the bail on deposit in the bail bank account.

Key Recommendations

  • Establish policies and procedures for the collection of parking tickets that include the segregation of incompatible duties or mitigating controls.
  • Establish policies and procedures for enforcing the collection of fines and late fees for parking violations.
  • Determine how much of the bail money in the combined bank account is not attributable to current pending cases, and attempt to determine the source of the remaining funds. Perform a periodic review of all Court accounting records, including the reconciliation of cash assets and known liabilities, and promptly investigate and resolve any discrepancies.