Purpose of Audit

The purpose of our audit was to determine whether the Board properly monitored the Village’s financial operations for the period June 1, 2011, to May 31, 2012.

Background

The Village of Munnsville is located in the Town of Stockbridge, Madison County, and has a population of approximately 470 residents. The Village is governed by an elected Board of Trustees (Board) comprising a Mayor and four Trustees. Budgeted appropriations for the fiscal year ended May 31, 2012, were approximately $157,000 in the general fund.

Key Findings

• The Board has not maintained an adequate level of unassigned fund balance which limits the Village’s ability to manage emergencies and other unanticipated occurrences. For example, in two of the last four fiscal years, Village officials appropriated more fund balance than was actually available. For the 2009-10 and 2011-12 fiscal years, the Board appropriated $1,874 and $999, respectively, of fund balance that they did not have.
• The Board also has not exercised effective oversight of the Clerk-Treasurer. For example, the Clerk-Treasurer has not filed the required annual financial report with OSC on a timely basis.
• The Board did not audit, or cause to be audited, the records and reports of the Clerk-Treasurer.

Key Recommendations

• Adopt a fund balance policy and develop procedures governing the level of unexpended surplus fund balance to be maintained for the Village’s general fund.
• Ensure that the Clerk-Treasurer files the Village’s annual financial reports within the prescribed statutory period.
• Perform annual audits of the Clerk-Treasurer’s records and reports, or have an officer, employee, or independent public accountant do so.