Audit Objective
Determine whether the Village of Sloan (Village) Clerk-Treasurer recorded and reported financial transactions accurately and in a timely manner.
Key Findings
Although the Clerk-Treasurer generally recorded financial transactions accurately, transactions were not always recorded in a timely manner. The Clerk-Treasurer also did not provide timely or accurate financial reports to the Board of Trustees (Board). As a result, the Board may have made financial decisions with inaccurate and out-of-date financial information. Specifically:
- Collections totaling $130,515 were not deposited within 10 days, as required by New York State Village Law Section 4-408.
- The cash balances reported on the monthly Treasurer’s reports, that were provided to the Board approximately six weeks after month-end, were not accurate. For example, the general fund cash balance was repeatedly understated by over $70,000 and the capital projects fund cash balance was repeatedly understated by over $33,000.Had the Clerk- Treasurer performed and the Board reviewed bank reconciliations these inaccuracies would have been identified and corrected.
- The Board did not periodically review the Clerk-Treasurer’s financial records to ensure transactions were recorded accurately and in a timely manner.
- The Board did not annually audit the Clerk- Treasurer’s records and reports as required by Village Law Section 4-408.
Recommendations
The audit report includes eight recommendations that if implemented, will improve the Clerk- Treasurer’s financial procedures.
Village officials agreed with our recommendations and indicated that they have initiated corrective action.