Purpose of Audit

The purpose of our audit was to review the Board’s oversight of the claims and annual audit processes for the period June 1, 2010, to March 31, 2012.

Background

The Village of Parish is located in Oswego County with a population of 450. The Village Board of Trustees is the legislative body responsible for managing Village operations. The Village’s 2010-11 expenditures were approximately $153,000 in the general fund and $183,000 in the sewer fund.

Key Findings

• The Board did not ensure that all claims were audited, were audited prior to payment, and did not properly audit all claims to ensure they included evidence of receipt and price quotes. As a result, 20 claims totaling $32,326 were paid even though evidence of Board approval was not documented in the Board minutes, and five claims totaling $6,258 were inappropriately paid in advance of Board audit. Although we did not identify any instances where goods and services were not received, two claims, totaling $4,099, lacked quotes as required by the Village’s procurement policy.
• The Board did not audit, or cause to be audited, the Treasurer’s records and reports.

Key Recommendations

• Verify that claims contain documentation that goods were received or services were rendered as part of their audit of claims and that Village officials and employees obtain price quotes as required by the Village’s procurement policy. Ensure that all claims are presented for audit by the Clerk. Ensure that only appropriate claims, allowed by Village Law, are paid in advance of audit and those claims are presented to the Board for audit as soon as possible after payment.
• Ensure that an annual audit of the Treasurer’s annual financial report and supporting records is performed, as required by Village Law.