2001-06-21
'-Sedore & Company-'
Certified Public Accountants, Pc.
POlIghkeepJie
(845) 485-5510
J011ltJ L. Stdore. .Ii:. CRA.
Mork S. 0 ~S'lIl1ivOII. CRA.
JOiner F Lettnio. JI:. CRA.
TereJo A. B{JlJ[hi. CRA.
Lilldo M HOIWigoll. CRA.
Korm T. HOIIJm. CPA
Po. Box 918 . 62 East Alain Street. JI1Jppingers Fa/lr, NY 12..590
(845) 297-1111 . Fax (845) 297-1432
www.sedoreandcompany.com
Beocoll
(845) 831-0542
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
AND ON INTERNAL CONTROL OVER
FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL
PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMRNT AUDITING STANDARDS
Newbllf7!:h
(845) 565-1373
To the Supervisor and
Members of the Town Board
Town of Wappinger, New York
Wappingers Falls, New York 12590
We have audited the general purpose financial statements of the Town of Wappinger, New York,
as of and for the year ended December 31, 2000, cmd have issued our report thereon dated June
21,2001. We conducted our audit in accordance with generally accepted auditing standards and
the standards applicable to financial audits contained in Government Auditing Standards 1 issued
by the Comptroller General of the United States.
Compliance
A.s part of obtaining reasonable assurance about whether the Town of Wappinger, New York's
general purpose financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with
which could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of OUI
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance that are required to be reported under Government Auditing Standards,
We also noted certain immaterial instances of noncompliance that we have reported to the
management of the Town of Wappinger, New York, in the Schedule of Findings and
Recommendations listed in the Table of Contents.
Internal Control Over Financial R~ortin&
In planning and performing our audit, we considered the Town of Wappinger, New York's
internal control over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the general purpose financial statements and not to provide
assurance on the internal control over financial reporting. Our consideration of the internal
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control over financial reporting would not necessarily disclose all matters in the internal control
over financial reporting that might be material weaknesses.
A material weakness is a condition in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level the risk: that misstatements in amounts
that would be material in relation to the general purpose 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. We noted no matters involving the internal control over financial
reporting and its operation that we consider to be material weaknesses. We noted other matters
involving the internal control over financial reporting that we have reported to the management
of the Town of Wappinger, New York, in the Schedule of Findings and Recommendations listed
in the Table of Contents.
This report is intended solely for the information and use of the Supervisor, Town Board,
Management, others within the Town and is not intended to be, and should not be, used by anyone
other than these specified parties.
~.~ ~Ctm;zO tC.f?#7.~S
Wappingers Falls, New York
June 21, 2001
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TOWN OF WAPPINGER, NEW YORK
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
FOR THE YEAR ENDED DECEMBER 31, 2000
OTHER MATTERS:
PRIOR YEAR FINDINGS - CONTINUING:
Findilll 1 - ~row Funds
Finrlinr:
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.
Effect:
Unanticipated liabilities could be incurred by the Town for which no
revenues/funds had been provided.
We note that the Town has made significant improvements in the
accounting for and the reconciling of escrow receipts and disbursements.
We continue to note that the significant debit balances remain. As of
December 31, 2000 there were 20 applicant debit balances over $1,000,
amounting to $92,540. We recommend that the Town review the projects
involved, determining collectibility of these amounts and the effect, if
any, on the Town project approval process.
Recommendation:
Fmdina 2 - Fixed Assets
Findina:
Cause:
The Town has not verified the existence of its fixed assets with amounts
carried on its records during the year.
The Town has not taken a physical inventory of its fixed assets since
1993.
Effect:
The Town's fixed assets could be overstated.
Recommendation:
The Town should periodically perform a physical inventory of its fixed
assets, whether by hiring an outside consultant or requesting employees
to compare updated lists to items on hand. Periodic inventories enable
the Town to maintain accountability by those employees using Town
assets, and to prevent loss. Finally, the Town will be able to use the
fixed asset inventory to assist in its compliance with GASB #34 by the
year 2003 as required.
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'-'" TOWN OF W APPINGEFt-'
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
TOWN OF WAPPINGER
FINDINGS AND RECOMMENDATIONS RESPONSES
TO AUDIT FOR THE YEAR ENDING DECEMBER 31,2000
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 has put into place a procedure that we hope will prevent this
from happening in the future. We are reviewing the deficit accounts and making
adjustments and also notifying those who owe some monies that they need to pay them
immediately.
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: As the GASB procedures are implemented, this problem should be
cleared up.
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