[read complete report – pdf]

Audit Objective

Determine whether the Village of Hancock (Village) officials ensured insurance premium contributions were accurately calculated and collected.

Key Findings

Village officials did not ensure that insurance premium contributions were accurately calculated and collected.

• Employee insurance contributions were not calculated correctly and the Clerk-Treasurer (Clerk) did not enforce the collection of retiree health insurance contributions, resulting in underpayments totaling $19,689.
• There was no formal Village Board (Board) action to support the contribution rates for dental insurance.
• Four employees overpaid a total of $1,400 because the Clerk and Deputy Clerk Treasurer (Deputy) did not adjust deductions for plan changes timely.
• Two retirees overpaid a total of $477 for health insurance.

Key Recommendations

• Provide oversight over the Clerk and Deputy to ensure the withholdings are calculated correctly and retroactive payments are collected.
• Reconcile monthly insurance invoices with withholdings to ensure that appropriate amounts are collected.
• Consult with the Village’s attorney to determine whether officials should seek reimbursement for the underpayments or reimburse employees for overpayments due to retroactive adjustments.

Village officials generally agreed with our recommendations and indicated that they plan to take corrective action.