Purpose of Audit

The purpose of our audit was to examine the Village’s financial operations, internal controls and information technology for the period June 1, 2011 through June 17, 2013.

Background

The Village of Port Byron is located in the Town of Mentz in Cayuga County. The Village, which is governed by an elected five-member Board of Trustees, has a population of approximately 1,300. Budgeted appropriations for the general, water and sewer funds for the 2013-14 fiscal year totaled approximately $1.3 million.

Key Findings

• The Board has not ensured that adequate policies and procedures have been adopted, regularly reviewed and updated, monitored and distributed to employees and officers.
• The Board did not ensure that the Clerk-Treasurer maintained accurate accounting records or that duties were properly segregated.
• The Board did not provide oversight of water and sewer account adjustments.
• The Board has not established policies and procedures relating to information technology.

Key Recommendations

• Establish and annually review written policies related to financial operations.
• Review the duties of the Clerk-Treasurer, ensure that the Clerk-Treasurer is meeting the fundamental responsibilities of the position and implement procedures to compensate for the lack of segregation of duties.
• Review and approve all adjustments made to customers’ water and sewer accounts and ensure that they are adequately documented.
• Adopt policies and procedures governing information technology, including those related to acceptable use, computer security, breach notification, disaster recovery and online banking.