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Audit Objective

Determine whether the Board adequately monitored cash receipts and disbursements.

Key Findings

The Board did not adequately monitor cash receipts and disbursements.

• Sufficient compensating controls were not implemented to minimize the risks associated with the lack of segregation of the Clerk-Treasurer’s duties.
• The Clerk-Treasurer collected, deposited and recorded cash receipts and prepared and signed checks without adequate review or approval by the Mayor or Board.
• The Board did not receive or review bank statements or canceled check images to help minimize the risk of unauthorized transactions or other errors or irregularities occurring and remaining undetected.
• Proper annual audits of the Clerk-Treasurer’s records were not performed.

Key Recommendations

• Establish sufficient compensating controls, including periodically reviewing bank statements, canceled check images and bank reconciliations prepared by the Clerk-Treasurer.
• Perform, or contract for, an annual audit of the Clerk-Treasurer’s records.

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