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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts


Connetquot Public Library – Cash Disbursements (2017M-125)


Released: September 29, 2017 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the Library’s controls over cash disbursements for the period July 1, 2015 through October 31, 2016.

Background

The Connetquot Public Library is located in the Town of Islip in Suffolk County. The Library is governed by an elected five-member Board of Trustees. Budgeted appropriations for the 2016-17 fiscal year totaled $6,040,900.

Key Findings

  • The Board adopted a policy granting check signing authority to seven Library staff members and officials, thereby curtailing the Treasurer’s duties and diminishing an important segregation of functions designed to help ensure that Library funds are disbursed appropriately.
  • The Board did not establish a petty cash fund at the lowest practical amount and did not audit petty cash disbursements made by multiple check signers.
  • Ten purchases totaling $3,661 made on three credit card claims either contained a confirming purchase order (PO) or did not have sufficient supporting documentation.

Key Recommendations

  • Ensure the Treasurer maintains custodial control over the Library’s bank accounts, and limit signatory rights on the bank accounts.
  • Establish a petty cash policy that limits the types and amounts of expenditures that can be made with petty cash and reduce the petty cash account to the lowest practical amount.
  • Ensure that POs are prepared and approved in advance of any purchase and limit the use of confirming POs to emergency situations.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236