Audit Objective
Determine whether the Village of Afton (Village) Board properly audited claims and monitored non-payroll disbursements.
Key Findings
The Board did not properly audit claims. As a result, payments were made prior to audit, for unsupported claims and for inappropriate purposes. Of the 98 claims totaling $155,528 reviewed:
- 53 claims totaling $13,356 were paid prior to audit and one claim totaling $793 did not include adequate supporting documentation, such as itemized receipts.
- The Village reimbursed the former Mayor for two payments totaling $1,500 for the Village’s accounting software, paid with her personal credit card. The Village should not reimburse anyone other than current Village officials or employees.
In addition, we reviewed 50 disbursements totaling $11,480 and determined that the Board did not properly monitor non-payroll disbursements, which is important as the Clerk-Treasurer performs all aspects of the process without any oversight. As a result, there is an increased risk that errors or inappropriate transactions could occur and remain undetected.
Key Recommendations
- Discontinue authorizing the Clerk-Treasurer to pay claims in advance of audit and ensure claims contain sufficient supporting documentation before approving them for payment.
- Pay for Village expenditures directly and not through reimbursements to Village residents.
Village officials generally agreed with our recommendations and indicated they have initiated corrective action.