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Purpose of Audit

The purpose of our audit was to evaluate internal controls over the Village’s financial operations for the period June 1, 2013 through November 17, 2015.

Background

The Village of Millport is located in the Town of Veteran in Chemung County. The Village, which is governed by an elected five-member Board of Trustees, provides water, street maintenance, lighting, snow removal, refuse collections, community and youth services and fire protection services to its residents. Budgeted appropriations for the 2015-16 fiscal year totaled $287,500.

Key Findings

• Lack of oversight by the Board allowed the Treasurer to misappropriate Village funds and make questionable payments to herself totaling as much as $4,442.
• The Treasurer collected, recorded and deposited cash, processed payroll, made purchases and prepared abstracts and checks without Board oversight.
• The Treasurer did not accurately record and report Village financial transactions in a timely manner.
• The Board did not annually perform or provide for an annual audit of the Treasurer’s records and financial reports.

Key Recommendations

• Take appropriate action to recover all misappropriated money.
• Ensure that the Treasurer’s activities are properly segregated, and where this is not feasible, compensating controls should be implemented.
• Maintain complete, up-to-date and accurate accounting records.
• Ensure that an annual audit of the Treasurer’s annual financial report and supporting records is performed.