Purpose of Audit

The purpose of our audit was to review the water system improvement reserve, claims, annual audits and information technology for the period June 1, 2011, to January 31, 2013.

Background

The Village of Pulaski is located in Oswego County and has approximately 2,400 residents. The Village is governed by an elected Board of Trustees which comprises a Mayor and four Trustees all serving two-year terms. Operating expenditures for the fiscal year ending in 2012 were $877,359 in the general fund, $369,629 in the water fund and $583,077 in the sewer fund.

Key Findings

• The Board disbursed $102,275 from the water system improvement reserve to pay for work associated with the River Street retaining wall project. However, because this reserve was set up as a capital reserve for the improvement of the water system, expending moneys from this reserve for other than its intended purpose, such as for the repair of the retaining wall, was an inappropriate use of the reserve.
• The Board did not effectively audit all claims under its jurisdiction because it only reviewed the voucher edit lists and did not review each related claim.
• The Board did not audit, or cause to be audited, the annual financial report or supporting records of the Clerk-Treasurer.
• The Board does not monitor the remote access of software vendors or the Village’s information technology consultant who has the ability to modify or destroy financial application data.
• The Board has not developed a comprehensive disaster recovery plan and back-up copies of data are not stored in a secure off-site location.

Key Recommendations

• Ensure that due care is taken to adhere to all statutory requirements as they pertain to establishing and expending from a reserve fund.
• Conduct a thorough and deliberate audit of claims before authorizing them for payment.
• Audit, or cause to be audited, the financial records of the Clerk-Treasurer.
• Develop policies and procedures addressing how remote access is granted, who is given remote access, and how remote access will be monitored and controlled.
• Develop and implement a formal disaster recovery plan and store backups of Village electronic data in an environmentally and physically secure off-site location.