Purpose of Audit

The purpose of our audit was to examine the Board’s financial oversight activities for the period June 1, 2011, to August 31, 2012.

Background

The Village of Nelsonville is located in Putnam County and has a population of 628 residents. The Village is governed by an elected Board of Trustees which comprises a Mayor and two Trustees. Budgeted appropriations for the 2012-13 fiscal year were $531,000 funded primarily with real property taxes and State aid.

Key Findings

The Board needs to improve its oversight of the Village’s financial operations.

• The Board did not develop policies and procedures for the Clerk-Treasurer to follow when performing cash receipts and disbursement duties and did not audit, or cause to be audited, the Clerk-Treasurer’s financial records and reports on an annual basis.
• The Board did not ensure bank reconciliations were properly performed and did not ensure the Village payroll was certified, as required by law.
• The Board did not provide mitigating controls to compensate for the lack of segregation of financial duties.

Key Recommendations

• Adopt cash receipts and disbursement policies and procedures. Audit, or cause to be audited, the financial records and reports of the Clerk-Treasurer on an annual basis.
• Ensure that the Clerk-Treasurer reconciles all the bank accounts monthly. Certify the payroll before the checks are processed.
• Segregate the Clerk-Treasurer’s duties or provide adequate oversight of work performed.