Purpose of Audit

The purpose of our audit was to determine whether the Board properly managed fund balance, cash receipts and disbursements, and water rents for the period June 1, 2016 through November 30, 2017.

Background

The Village of Afton is located in the Town of Afton in Chenango County. The Village, which is governed by an elected Board of Trustees, has a population of 822. Budgeted general and water fund appropriations for the 2017-18 fiscal year totaled $571,248.

Key Findings

• The Board did not properly manage fund balance levels.
• The Board did not provide proper oversight of the Clerk-Treasurer’s cash receipts and disbursements responsibilities.
• The Board did not ensure that water rents and penalties were properly billed.

Key Recommendations

• Develop a fund balance policy establishing a reasonable amount of fund balance that should be maintained to meet the Village’s needs.
• Segregate the Clerk-Treasurer’s financial duties or establish sufficient compensating controls to provide additional oversight.
• Ensure that all system users are properly charged for water use and penalties.