1992-12-31 (2)
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TOWN OF WAPPINGER, NEW YORK
FINDINGS AND RECOMMENDATIONS, AND
RESPONSES BY TOWN OF WAPPINGER, NEW YORK
DECEMBER 31. 1992
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RECEIVED
AU6 2 0 1993
ELAINE SNOWDEN
TOWN CLERK
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TOWN OF WAPPINGER, NEW YORK
FINDINGS AND RECOMMENDATIONS
AND RESPONSES BY TOWN OF WAPPINGER
TABLE OF CONTENTS
DECEMBER 31. 1992
DESCRIPTION
PAGElS)
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Accountants' Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-2
Findings and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-4
Responses by Town of Wappinger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-6
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Sedore,
O'Sullivon
Zetterio
Certified Public Accountants, P.C.
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, 1992, 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.
The reportable conditions that were noted are included in the following schedule of "Findings
and Recommendations", none of which we consider a material weakness, except for Finding
3 with respect to the bidding procedures followed by the Town of Wappinger, New York.
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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.
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.
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62 East Main Street · P.O. Box 918 · Wapplngers Falls NY 12590
Wappingers Falls 914-297-1111/fax 914-297-1432 · Beacon 914-831-D542/fax 914-831-5114
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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.
~/O~J.d~CJ ~CIJ/J!sltP,(!.
Wappingers Falls, New York
May 14, 1993
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TOWN OF WAPPINGER, NEW YORK, NEW YORK
FINDINGS AND RECOMMENDATIONS
DECEMBER 31. 1992
FINDING 1: Minutes of Town Board were not signed by the Town Clerk.
We recommend that when the minutes are submitted for approval, that
'4(11 they should be signed by the person responsible for the minutes prior to
being made part of official Town records.
FINDING 2: Amounts paid on bidded contracts exceeded bid award. However, at a
later time the Town became aware of excess payments and requested a
refund from vendor. The refund was received by Town bringing
amounts paid on contract to correct bid awarded totals.
We recommend that the Town establish controls to be followed prior to
payment of items, which were previously bid, to ascertain that amounts
.. charged to the Town agree with amounts awarded.
FINDING 3: Budget transfer approvals were executed after expenditures had been
incurred.
We recommend that controls are established, whereas 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.
. FINDING 4: Compensated absence reports included accumulation of 1991 unused
personal leave days combined with unused sick days in order to arrive
at total accumulated sick days carried by non-employees. In
conversation with recordkeeping personnel, an explanation was given
that a verbal authorization was made to allow for the carry-forward of
unused personal days for the year ended December 31, 1991.
We recommend that any authorization which changes current written
policy, be documented.
FINDING 5: Our disbursement testwork disclosed a Purchase Order in the amount of
., $1,955.00 without Town Board approval. According to the Town's
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FINDING 6:
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Procurement Policy, an item that exceeds $750.00 needs Town Board
approval, with the exception of purchases for the Highway Department.
In conversation with Town personnel, it was explained that the
threshold of $750.00 for Town Board approval is incorrect.
We recommend that if amounts indicated in the Town's procurement
policy are incorrect, a revised Procurement Policy should be enacted.
Excess accumulation of Fund Balance for the General Fund and
Highway Fund.
We recommend that the Town review its budget in order to properly
monitor revenues and expenditures for any given year. As part of the
budget for the following year, the Town should consider appropriating a
reasonable amount of any excess accumulated Fund Balance at the end
of the prior year.
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· TOWN OF WAPPINGER
CONSTANCE O. SMITH SUPERVISOR'S OFFICE
SUPERVISOR 2'0 MIDDLEBUSH ROAD
P.O. BOX 324
TELEPHONE: (914) 297-2744 WAPPINGERS FALLS, NY 12590-0324
FAX: (914) 297-4558
TOWN OF WAPPINGER, NEW YORK
· FINDINGS AND RECOMMENDATIONS RESPONSES
TO DECEMBER 31, 1992 AUDIT
FINDING 1: Minutes of Town Board were not signed by
Town Clerk.
RESPONSE 1:
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FINDING 2:
RESPONSE 2:
FINDING 3:
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RESPONSE 3:
FINDING 4:
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RESPONSE 4:
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All minutes are approved by the Town Board
and the Town Clerk's name is typed on and
normally signed by the Town Clerk. However,
the clerk did miss signing a few, possibly
when she was on vacation.
Amounts paid on bidded contracts exceeded
bid award.
We have implemented a system that all
contracts, bids, etc. are read as payments
are being processed.
Budget transfer approvals were executed
after expenditures had been incurred.
The recreation department sometimes arranges
to have labor donated for a project and
schedules the project at the convenience of
the people donating time1 therefore, they
need to purchase materials for the job. The
project is discussed at a Workshop and ok'd
and then voted on at the next Town Board
meeting since we do not vote at Workshops.
These are exceptions rather than practices.
Compensated absence reports included
accumulation of 1991 unused personal leave
days combined with unused sick days in order
to arrive at total accumulated sick days
carried by non-employees.
The Highway CSEA contract authorizes the
personal leave carryover, therefore to be
consistent it was authorized to do the same
for Town employees. This was only done in
1991. Until the policy is amended it will
not be authorized.
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RESPONSES TO AUDIT
page 2
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FINDING 5:
RESPONSE 5:
FINDING 6:
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RESPONSE 6:
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Our disbursement testwork disclosed a
Purchase Order in the amount of $1,955.00
without Town Board approval.
It appears that there was an error in the
threshold agreed upon. However, the
financial policy is to be reviewed annually
and can be corrected at that time, until
then, the printed threshold will be followed
Excess accumulation of Fund Balance for the
General Fund and Highway Fund.
There really is no excess fund balance--The
monies are all appropriated for various
projects: will fall in line by the year end.
The money is being used for various Town
projects that would have gone out to bonding
thus, we have saved paying interest.
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