Purpose of Audit

The purpose of our audit was to determine if Village officials established effective internal controls over payroll for the period June 1, 2013 through December 31, 2014.

Background

The Village of Cambridge is located in the Town of Cambridge, Washington County, and has a population of approximately 1,870. The Village is governed by an elected five-member Board of Trustees. Budgeted appropriations for the 2014-15 fiscal year totaled approximately $1.28 million.

Key Findings

• Payroll duties were not adequately segregated.
• The Board did not establish, document and approve pay rates for all employees, and some employees did not receive the correct gross pay.
• The Treasurer did not maintain leave accrual records for employees as directed by the Village’s personnel procedures.

Key Recommendations

• Implement compensating controls to address the lack of segregation of duties within the payroll process.
• Ensure that all pay rates and the compensation paid to employees are properly authorized and approved.
• Ensure that leave accrual records for all employees are maintained and periodically reviewed.