Audit Objective

Determine whether Village of Waverly (Village) officials established adequate controls over Parks and Recreation Department (Department) financial activities.

Key Findings

Village officials did not establish adequate controls over the Department’s financial activities, resulting in $16,525 in unaccounted for collections.

• Cash receipt processes and oversight were inadequate and key duties were not segregated.
• Collection, receipting and recordkeeping procedures were inadequate.
• The Department hosted 15 tournaments and held nine fundraisers. However, no money was deposited for 11 of the tournaments and two of the fundraisers.
• Registration forms for 26 of 36 sports leagues were not maintained.
• The former Director awarded scholarships (i.e., waived registration fees) without any guidelines, Board oversight or approval.
• The former Director inappropriately used Village bank accounts for non-Village activities.

As a result of our audit and investigation, the former Director was arrested and pleaded guilty in December 2022 to official misconduct. As part of his plea, the former Director resigned from his position in November 2022, was sentenced to a one-year conditional discharge and paid the Village full restitution of $16,525 in connection with his crimes.

Key Recommendations

• Establish adequate financial activity controls.
• Develop criteria and provide oversight for the scholarship program.