Purpose of Audit

The purpose of our audit was to ensure that the Board and Mayor properly monitored the Village’s fiscal operations for the period June 1, 2011 to July 16, 2012.

Background

The Village of Richmondville is located in Schoharie County. The Village has 918 residents; its annual budget for 2012-13 is approximately $1.95 million. The Board, comprising five elected Trustees, governs the Village and is responsible for the general management and control of the Village’s finances and operations.

Key Findings

• The Board and Mayor did not ensure that only authorized disbursements were made. Payments totaling $1,386 were made to the Clerk-Treasurer without Board approval and all employees had the wrong amounts withheld for health insurance. In addition, 447 checks totaling approximately $325,000 were inappropriately paid prior to Board audit.
• There is a lack of segregation of duties within the payroll and disbursement processes and only limited oversight of the Clerk-Treasurer and her staff.

Key Recommendations

• Ensure that the Clerk-Treasurer and Second Deputy do not have full control over the payroll process or establish mitigating controls. Ensure that someone outside of the payroll process verifies that all employees are paid at documented Board-approved pay rates and that withholdings are accurate.
• Ensure that the Clerk-Treasurer and her two Deputies cannot perform all functions within the financial software for non-payroll disbursements or establish mitigating controls. Ensure that all the claims are listed on an approved abstract and audited by the Board, prior to payment, unless otherwise authorized by law.