Purpose of Audit

The purpose of our audit was to review selected financial activities for the period of June 1, 2011, to October 15, 2012.

Background

The Village of Middleburgh is located in Schoharie County and has approximately 1,500 residents. The Village is governed by a Mayor and four Trustees who form the Village Board. The Village’s annual budget for the 2011–12 fiscal year was $1 million.

Key Findings

The Board and the Mayor did not meet their fiscal oversight responsibilities.

• They did not realize that they were required to annually audit the Clerk-Treasurer’s records and reports, and therefore, did not audit any of the Clerk-Treasurer’s receipt or disbursement records.
• They have allowed the Clerk-Treasurer and Deputy to perform all of the financial functions including billing, collecting, recording and depositing cash receipts, and printing and signing checks, without anyone verifying the accuracy and completeness of the work they perform.

Key Recommendations

• Audit the financial records of the Clerk-Treasurer, at least annually, to verify that all moneys due to the Village are collected and deposited and that all disbursements are for proper Village purposes and have been approved prior to their payment.
• Ensure that proper controls and oversight are in place, especially when one person performs all aspects of a financial function. Ensure that the Clerk-Treasurer is properly collecting, recording and disbursing Village funds.