[read complete report – pdf]

Audit Objective 

Determine whether the Village of Wappingers Falls (Village) Board of Trustees (Board) provided adequate oversight over financial operations and capital projects.

Key Findings 

The Board did not provide adequate oversight over financial operations and capital projects. As a result, the Board did not have sufficient information to oversee financial operations and capital projects. The Board was unaware of the Village’s financial position and that financial records were disorderly and incomplete. The Board did not: 

• Ensure it received adequate monthly financial reports or review bank reconciliations.
• Ensure bond anticipation note (BAN) proceeds were properly used.
• Ensure the Village’s Annual Financial Report (AFR) was properly filed, as required.
• Annually audit the Treasurer’s records, as required.
• Adopt a multiyear capital plan.
• Maintain capital project records, including written contractual agreements.
• Develop mitigating controls for the lack of segregation of financial duties.

Key Recommendations 

• Adopt policies and procedures to establish mitigating controls for the lack of segregation of financial duties, including reviewing bank statements, bank reconciliations and online transfers.
• Ensure that the AFR is submitted timely and accurately to the Office of the State Comptroller (OSC).
• Ensure the Treasurer’s records, including capital project records, are complete and accurate and audited annually.

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