Purpose of Audit

The purpose of our audit was to examine the Village’s method of compensating Village officials and credit card usage for the period June 1, 2010, through April 30, 2012.

Background

The Village of Huntington Bay is located in the Town of Huntington, in Suffolk County and had a population of 1,425 residents. The Mayor and Board of Trustees are responsible for the overall management of the Village. The general fund expenditures for the 2011-12 fiscal year were approximately $2.1 million.

Key Findings

• The Village is compensating the appointed Building Inspector and elected Village Justice by voucher as if they were independent contractors. However, these are Village official positions and must be paid on the Village’s payroll.
• The Board did not adopt a comprehensive credit card policy. Although the Village adopted a credit card policy on April 23, 2012, this policy only set the credit card limits and required that receipts be submitted for any purchases; it did not specify who was authorized to use the credit cards, for what purpose the cards could be used, or procedures for monitoring the card usage. The Village had two major credit cards, one issued to the Mayor and one issued to the Administrator. The Mayor regularly used the Village credit card at local restaurants and in most instances there were no credit card receipts to show whether items purchased were appropriate Village charges.

Key Recommendations

• Take steps to ensure that anyone who performs the Village building inspection function meets all the requirements for holding Village office. Institute procedures to ensure that all payments for personal services to the Justice are based on duly approved payrolls and that required State and Federal taxes are withheld and transmitted to the proper authorities.
• Review and update the credit card policy to describe the types of purchases allowed, when it is appropriate to use the credit card, and what documentation is required. Establish a meal and refreshments policy indicating when it is appropriate to provide meals and refreshments to officials and employees.