1993-12-31 (2)
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TOWN OF WAPPINGER, NEW YORK
FINDINGS AND RECOMMENDATIONS, AND
RESPONSES BY TOWN OF WAPPINGER, NEW YORK
DECEMBER 31. 1993
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A12CI2/III2D
SEp 20
~l..4 1994
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TOWN OF WAPPINGER, NEW YORK
FINDINGS AND RECOMMENDATIONS
AND RESPONSES BY TOWN OF WAPPINGER
TABLE OF CONTENTS
DECEMBER 31. 1993
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DESCRIPTION
PAGElS)
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Accountants' Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-2
Findings and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
... Responses by Town of Wappinger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-5
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Sedore,
0' Sullivan,
Letterio
& Barschi
Certified Public Accountants. P.C.
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ACCOUNTANTS' REPORT
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Constance Smith, Supervisor
and the Members of the Town Board
Town of Wappinger, New York
Town Hall
20 Middlebush Road
Wappingers Falls, New York 12590
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In planning and performing our audit of the general purpose financial statements of the Town
of Wappinger, New York, as of and for the year ended December 31, 1993, we considered
its internal control structure in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the
internal control structure. However, we noted certain matters involving the internal control
structure and its operation that we consider to be reportable conditions under standards
established by the American Institute of Certified Public Accountants. Reportable conditions
involve matters coming to our attention relating to significant deficiencies in the design or
operation of the internal control structure that in our judgment could adversely affect the
Town of Wappinger's ability to record, process, summarize, and report financial data
consistent with the assertions of management in the financial statements.
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A material weakness is a reportable condition in which the design or operation of one or
more of the internal control structure elements does not reduce to a relatively low level the
risk that errors or irregularities in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely period by employees
in the normal course of performing their assigned functions.
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Our consideration of the internal control structure would not necessarily disclose all matters
in the internal control structure that might be reportable conditions and, accordingly, would
not necessarily disclose all reportable conditions that are also considered to be material
weaknesses as defined above. However, we believe none of the reportable conditions
described in the following schedule of "Findings and Recommendations" to be a material
weakness.
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62 East Main Street. P,O. Box 918. Wappingers Falls NV 12590
Wappingers Falls (914) 297-1111/fax (914) 297-1432 . Beacon (914) 831-D542/fax (914) 831-5114. Newburgh (914) 565-1373
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This report is intended solely for the information and use of the Supervisor and the Members
of the Town Board of the Town of Wappinger, New York.
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/ ,.. 6~~'i/V. ~~I3~/GjJI15, PC-
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Wappingers Falls, New York
May 13, 1994
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FINDING 1:
FINDING 2:
FINDING 3:
FINDING 4:
TOWN OF WAPPINGER, NEW YORK, NEW YORK
FINDINGS AND RECOMMENDATIONS
DECEMBEJ{ 31. 1993
Budget transfer approvals were executed after expenditures had been
incurred.
We recommend that controls be established, so that budget availability
is reviewed prior to incurred expenditure, and if a budget transfer is
necessary, such a transfer should occur prior to the commitment of the
expenditure.
Continued excess accumulation of Fund Balance for the General Fund.
We recommend that the Town review its budget in order to properly
monitor revenues and expenditures for any given year. As part of
preparing the budget for the following year, the Town should relate
actual collections of revenues and project a reasonable amount for the
following year. After taking this information into consideration, the
Town should appropriate a reasonable amount of Fund Balance.
Finally, the Town would compute its tax levy.
Payments made in excess of escrow amounts collected.
The Town collects escrow funds to ensure that costs incurred by the
Town, while projects or subdivisions are being considered by the
Planning Board, are borne by the applicants. The Town maintains
records for each project/applicant so that balances can be monitored,
however, in many cases the disbursements exceeded the escrow
collected.
The Town should establish procedures to monitor escrow balance,
require additional payments when necessary and improve collection
efforts on those accounts where expenditures have exceeded amounts
deposited with the Town.
Excess interest allowed to accumulate in Agency accounts.
Certain Agency funds are kept in interest-bearing accounts. Interest
earned on these funds has not been transferred to the General Fund, but
has been allowed to accumulate, in one case to an amount in excess of
$19,000.
We recommend that the interest be periodically transferred to the
General Fund and the appropriate revenue be recorded.
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TOWN OF WAPPINGER
CONSTANCE O. SMITH
SUPERVISOR
SUPERVISOR'S OFFICE
20 MIDDLEBUSH ROAD
P.O. BOX 324
WAPPINGERS FALLS, NY 12590-0324
TELEPHONE: (914) 297.2744
FAX: (914) 297-4558
August 24, 1994
MEMO TO:
Sedore, O'Sullivan, Letterio & Barschi
FROM:
Constance O. Smith
RE:
AUDIT RESPONSE
In response to your audit findings, I offer the following:
FINDING 1: Budget transfer approvals were executed after
expenditures had been incurred.
ANSWER 1: Controls have been established to insure that
no expenditure will be processed until funds
are available in any line item.
FINDING 2: Continued excess accumulation of Fund Balance
for the General Fund.
ANSWER 2: The Comptroller and Town Supervisor do review
the prior year budgeted amounts and actual
amounts as a tool to prepare the future
budget. The Supervisors', as chief fiscal
officer, policy is to not have a yo-yo effect
on the t axpaye r (dec rease cu r rent yea r,
increase future year). When possible, the
Town has projected revenues based on prior
years. However, we are reluctant to budget
for revenues comi ng from St at e. I n past
years, there has been a great deal less
between budgeted amount of state aid and
actual received.
FINDING 3: Payments ~ade in excess of escrow amounts
collected.
ANSWER 3: The Supervisor has been working to establish a
procedure to monitor the escrow balance of the
Planning Board account. In fact, we have
contracted with your firm to assist us. It is
our desire to have all financial business done
in the comptrollers office and not small
accounts being held by departments.
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Audit Response
page 2
FINDING 4: Excess interest allowed to accumulate in
Agency accounts.
ANSWER 4:
The interest in this account will be
transferred as soon as the Supervisor can
report #'s and possible project to the Town
Board so t hey can make i nt ell i gent dec is ions
and direct the Comptroller as to how they wish
the money to be appropriated.
COS:dlh
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