Audit Objective 

Determine whether the Village of Earlville (Village) Clerk-Treasurer recorded and deposited all collections accurately and in a timely manner.

Key Findings 

Although the Clerk-Treasurer accurately recorded collections that we reviewed in the central accounting records, she did not always deposit collections in a timely manner. We also identified that staff in the Clerk-Treasurer’s office did not routinely issue duplicate receipts or maintain a collection log or cash receipts journal showing a description of each transaction.

Of the 296 collections totaling $302,050 that we reviewed, nine collections totaling $77,705 did not have a receipt date documented in the records. Therefore, we could not determine whether the collections were deposited in a timely manner. Of the remaining 287 collections, the Clerk-Treasurer did not deposit 132 collections (46 percent) totaling $77,093 in a timely manner. New York State Village Law (Village Law) Section 4-408(b) requires collections to be deposited within 10 days of receipt. Without detailed receipt records and timely deposits, the Village has an increased risk that funds could be lost or misappropriated without detection.

Recommendations 

The audit report includes six recommendations that, if implemented, will improve the Village’s collection process and Board oversight of collections.

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