[read complete report here - pdf]

Audit Objective

Determine whether Village of Canaseraga (Village) claims were adequately supported, appropriate and properly audited and approved before payment.

Key Findings

Although the 300 claims reviewed were for appropriate Village purposes, certain claims were not adequately supported or properly audited and approved before payment. As a result, there was an increased risk that improper or unsupported payments could have been made and not detected and corrected.

Of the 300 claims we reviewed totaling approximately $758,000, 205 claims (68 percent) totaling approximately $656,000 had one or more exceptions and should not have been approved for payment:

• 145 claims totaling approximately $588,000 were paid without evidence of being audited or reviewed by the Village Board (Board).
• 64 claims totaling approximately $114,000 were paid prior to scheduled monthly Board meetings and were not audited prior to payment.
• 27 claims totaling approximately $24,000 did not have departmental approval and 20 claims totaling approximately $4,400 were not mathematically accurate when paid.

Board members did not know what their claims audit responsibilities were, nor did they take training to learn what their claims audit responsibilities were.

Key Recommendations

• Conduct a thorough and deliberate audit of each claim presented for payment.
• Discontinue paying claims prior to audit unless for an authorized prepaid expenditure.

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