[read complete report - pdf]

Audit Objective

Determine whether the Board provided sufficient oversight of the former Clerk-Treasurer.

Key Findings

• The Board failed to implement proper internal controls and the former Clerk-Treasurer did not adequately perform her duties. As a result, during our audit period, the former Clerk-Treasurer received inappropriate payments totaling $8,828. This matter has been referred to the Schoharie County District Attorney’s Office.
• Financial records maintained by the former Clerk-Treasurer were significantly deficient; the CPA issued a disclaimer of opinion and we were unable to determine whether all water, sewer and refuse receipts were deposited.
• The former Clerk-Treasurer did not calculate health insurance benefits in accordance with the employee handbook.
• The former Mayor was aware of some of these deficiencies, but did not inform the Board.

Key Recommendations

• Seek reimbursement from the former Clerk-Treasurer as appropriate.
• Develop policies, procedures and records to ensure Village money is safeguarded.
• Obtain appropriate training.

Village officials agreed with our recommendations and indicated they planned to initiate corrective action.