Purpose of Audit

The purpose of our audit was to review the Village’s procurement and cash receipts practices for the period June 1, 2012 through December 31, 2013.

Background

The Village of Bellerose is located in the Town of Hempstead in Nassau County and has a population of approximately 1,200. The Village is governed by an elected five-member Board of Trustees. Budgeted appropriations for the 2013-14 fiscal year totaled approximately $1.5 million.

Key Findings

• Village officials do not require the use of a purchase order system when making purchases and do not enforce compliance with the Village’s procurement guidelines.
• Village officials do not seek competition when purchasing goods and services that, according to the Village’s purchasing policy, must be purchased using competition.
• The Board did not adopt policies to govern the use of the Village’s credit cards.
• The Treasurer has incompatible financial duties related to cash receipts, and no one reviewed the Treasurer’s work.

Key Recommendations

• Ensure that employees use requisitions and purchase orders prior to ordering goods and services and that all Village employees and the Fire Chief are aware of and comply with the Village’s purchasing policy.
• Consider updating the Village’s procurement policy to include use of competitive methods, such as using a request for proposal process, when obtaining professional services.
• Adopt comprehensive policies and procedures to govern the use of credit cards.
• Develop and adopt written policies and procedures over cash receipts and ensure that the Treasurer’s duties are adequately segregated.