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2003-12-31 22-12-04; 9:47 ;8452971432 # 1/ 7 '-' n .-- d~r;.,. 7;l/1 MD&A Description of what happened during the year. ./ Condensed financial statements ./ Analysis of overall fmancial position and results of operation ./ Significant transactions and changes in individual funds ./ The budget ./ Capital asset and long term debt activity ./ Infrastructure assets ./ Any currently known facts, decision or conditions that may have significant effects on the coming years (not what might happen) ,;. jV\ .Al L ~ 1J CI'-~^ ~ S-:1-~u(t1i G ,1I",6,.oM .-~ \ LI-f~~-c-. ~ t.L .' ColA. / I -' pI\ Alr(,,-. ~ '-" ....., TOWN OF WAPPINGER FINDINGS AND RECOMMENDATIONS RESPONSES TO AUDIT FOR THE YEAR ENDING DECEMBER 31,2003 Prior Year Finding FINDING 1: Building Department Software - Clerks may enter amounts and print out a receipt without saving information, software does not automatically assign receipt numbers, and system does not allow monthly reports to be printed of all fees received. RESPONSE 1: The Town of Wappinger is undergoing a overhaul of all department's technology including software. In 2005, the Building Department will acquire new software that will interface with the Town Clerk and Comptroller's office to better track transactions in a real time snapshot. This new software will be implemented in 2005 and should rectify any concerns of reconciliation. FINDING 2: Escrow Funds - Payments have been made in excess of escrow amounts collected resulting in excess payments to individual project owners/developers. RESPONSE 2: The Town Board's implementation of new software in Pla~ ~ Building, and Zoning shall expedite the closing of these escrows in 2005. Current process does not audit and perform this function in a timely manner which has manually prolonged the escrow situation. There has been significant improvement in regards to the escrow situation since 2003. The escrow balances ~ been reduced by 1/3. .~/ FINDING 3: Recreation Fees - Recreation program registration records did not reconcile to receipt records. RESPONSE 3: The recreation department is presently using receipt books that are serially numbered to avoid this situation. This problem was corrected in Fall 2004. 22-12-04; 9:47 ;8452971432 # 6/ 7 '-' "wi! TOWN OF WAPPINGER, NEW YORK SCHEDULE OF FINDINGS AND RECOMMENDATIONS FOR THE YEAR ENDED DECEMBER 31. 2003 OTHER MATTERS: PRIOR YEAR FINDINGS - CONTINUING: FindiDe: 2 - Escrow Funds Cause: Payments have been made in excess of escrow amounts collected resulting in excess payments to individual project owners/developers. 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 some cases the disbursements exceeded the escrow collected. Findine:: Effect: Unanticipated liabilities could be incurred by the Town for which no revenues/funds had been provided. / Recommendation: We note that the Town Board authorized legislation during 2002 which provided for policies and procedures to ensure that the Town does not subsidize applicant review costs. However we continue to note that as of December 31 , 2003 some significant old debit balances remain, amounting to $66,067. We recommend that the Town continue to review the projects involved, determining collectibility of these amounts and make adjustments as necessary. Findine: 3 - Recreation Fees Findine:: Recreation program registration records did not reconcile to receipt records. Cause: The registration records for two sport programs chosen as our sample did not agree with the funds collected. In one instance the receipts were $170 less than amount collected on registration list. In the other instance only participants paid with checks were on list and was $240 less than what was deposited with the Town Clerk. Effect: The Town can be collecting fewer fees. Recommendation: Registration lists and funds collected should be verified before being deposited, preferable by the Accounting Department, and discrepancies investigated in a timely manner. I' 2- o.l~_/Iff'M.L ~~Y\~r ~ ~1tut'JU- I.~ p'h 1- ' !,' ~ 17v-- ~r><Jt1 16 &~ !' -;4 1t"/!.9-1<~ J:6CUA-' Pf~J' ~~,x;...J' ~ ' 6)61 s:: G..uu<-d 7)1,.. '^'- ~'i tfJ4 6' ~ ti ~,~~ch;" ~ ~ +~ &w (j ;wt ~ f7V' ~ h ~ ~IA~"'. h1~ ()Jk k ~AA/A ~ju1 "';? - ~ ~--~~~~~ ~ ;a, <1N. ~ ~ ~u 2..<>0"5. ThL ~ b~CLo ~ ~ ~~ ~- r:~~6-. Jtu ~ ~~~ ~ ~~ w.vn'~ ~ ~ "i1---4- oJ~~ ~ P (}-rlJ. ~ ~. ~ ~ W0.-4- ~ ~ ~ '6 2(J(J'f 22-'2-04; 9:47 ;8452971432 # 7/ 7 '-' """" TOWN OF WAPPINGER, NEW YORK SCHEDULE OF FINDINGS AND RECOMMENDATIONS FOR THE YEAR ENDED DECEMBER 31. 2003 CURRENT YEAR FINDING: Findine 1 - Buildine Department Software Findine:: During the audit we tested revenue in the Building department. In April of 2003 new software (SCA) was implemented. Our test work reveled the following: . The clerks may enter amounts in to the system and print out a receipt without saving into the system . The SCA software does not assign automatic receipt number, therefore receipt numbers are entered into manually . At this point the SeA system is not capable of printing a monthly report that includes all fees received. The Clerks are preparing the monthly report, manually from the printed receipts. This report is not reconciled to the system. Cause: The SCA system has not been set up with the proper internal control procedures and does not have proper reporting capabilities Effect: There is no control over the cash receipt's being disbursed or recorded. Amounts in the system may be different than amounts remitted to the Town Clerk and Comptroller. Clerks have to recreate data that the software should be able to produce. Recommendation: The SCA software consultant should set the parameters of the system to include automatic receipt numbers. The software consultant should be requested to make the software produce a monthly report including all the fees received for the month. The monthly report should then be reconciled to amounts received. If the software is unable to produce this report then at least the amounts received should be reconciled with the "Cashbook receipts register". f<,' A AO rJr\AL '10 ~~ 1-' '~ J, ' --rw. ~ of vJ~ ,AA \.,V\dt,..pun S 4, ~ 2bo~ 1- cM1 k~ '/.etl-.nvIOf<1 ~cfM.b.j Sd .-.... ft-,.J ~ G,. S . "-<- U (j . ~ ,n,../+t1)LvL ~ ~7 ~,~ w' ~ ;c~../~ o/,4ce -it> hd6. M It.,II'1I fn kj~ r. WI 1h 'l/"WYI f-, ~ A/J f;'l' ~ - . --i ,,,,~, S 11 ~ S . JT~ -VtJ-f\~a.Lhd>tS ~ (,\. ,~ .:, _A~~~' ZOO ~ ~ ~ /IlJMf ~~ w,Ji b-.e- :/__v-,-~'<- I,;;: J U..-tfV1 tA ~ ) . shDuld ylth ~ uY'~ ~ 0 r k ~h~ '-" ...., TOWN OF WAPPINGER SUPERVISOR JOSEPH RUGGIERO ~,/<~ WA-P~C;~ ~~/.~ ..O.~/":.~.'.~~. ((~, _~);i>: \c ~'j~ \'^"'. //.1..- ,(\.L. .... /.c... \;;7," ..~ "~~!i_.SO~~! TOWN COUNCIL VINCENT BETTINA CHRISTOPHER J. COLSEY JOSEPH P. PAOLONI ROBERT L. VALDATI SUPERVISOR'S OFFICE 20 MIDDLEBUSH ROAD WAPPINGERS FALLS. NY 12590-0324 (845) 297-2744 FAX: (845) 297-4558 TOWN OF WAPPINGER FINDINGS AND RECOMMENDATIONS RESPONSES TO AUDIT FOR THE YEAR ENDING DECEMBER 31,2001 Prior Year Finding FINDING 1: Escrow Funds -Payments have been made in excess of escrow amounts collected resulting in excess payments to individual project owners/developers. RESPONSE 1: The Town of Wappinger Adopted Local Law # 7 of2002 on April 22, 2002 which established and fixed escrow procedures for the Planning Board process. The Town has also purchased and implemented billing software in the Building Department to monitor and properly bill all escrow accounts for work tendered by the Town and its professionals. FINDING 2: Fixed Assets - The Town has not verified the existence of its fixed assets with amounts carried on its record during the year. RESPONSE 2: The Town of Wappinger will be hiring an inventory and appraisal company in 2003 to conduct a Town wide inventory and appraisal of all town assets. This inventory will be done as part of the Town's preparation for the new GASB procedures and regulations. '--' 'WI' TOWN OF WAPPINGER FINDINGS AND RECOMMENDATIONS RESPONSES TO AUDIT FOR THE YEAR ENDING DECEMBER 31, 2002 Prior Year Finding Finding 1: Escrow Funds - Payments have been made in excess of escrow amounts collected resulted in excess payments to individual project owners/developers. RESPONSE 1: The Town of Wappinger adopted local law # 7 of 2002 on April 22, 2002 which established and fixed escrow procedures for the Planning Board process. The Town also implemented billing software in the Building Department to monitor and properly bill all escrow accounts for work tendered by the Town and its professionals. Since implementation of these processes, there have been no additional monies paid out of town funds to cover escrow expenses. Any remaining balances due the Town are from escrow accounts from years prior to the adopting of these procedures. The Town is still aggressively working to invoice and collect monies owed by developers where possible. Finding 2: Fixed Assets - The Town has not verified the existence of its fixed assets with amounts carried on its records during the year. RESPONSE 2: The Town of Wappinger will be hiring an inventory and appraisal company in 2004 to conduct a Town wide inventory and appraisal of all Town assets. The inventory will be done as part of the Town's preparation for the new GASB procedures and regulations. Finding 3: Recreation Fees - Recreation program registration records did not reconcile to receipt records. RESPONSE 3 - Recreation personnel have been instructed to note in their receipt book when a child is registered for free due to hardship or other circumstances. This will assure that receipts and registrants will match.