[read complete report – pdf]

Audit Objective

Determine whether Village of Monticello (Village) officials ensured that payroll and payroll-related benefits were paid properly.

Key Findings

Village officials did not ensure that employees were paid appropriately. As a result, for the limited periods that we reviewed, 11 (15 percent) of the Village’s employees received erroneous compensation totaling $141,800.

• Due to unclear Board resolutions, undocumented verbal agreements and a lack of Board oversight, training and controls, the Village’s deputy clerk was overpaid by approximately $80,000 over a two-year period.
• Nine police officers were overpaid by $49,000. Two officers accounted for $39,000 of the total overpayments.
• The payroll clerk accrued and used unauthorized leave and paid herself for more time than she was entitled, resulting in overpayments of about $12,800.

Key Recommendations

• Take immediate action to strengthen the Village’s policies and procedures for payroll processing.
• Review the overpayments identified in this report and seek reimbursement, if necessary.

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