Audits of Local Governments and School Districts
Town of Cortlandt – Internal Controls Over Selected Financial Activities (2011M-161)
Released: December 30, 2011 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine the Town’s internal controls over selected financial activities for the period January 1, 2010 to April 5, 2011.
Background
The Town of Cortlandt is located in Westchester County. The Town Board, composed of four elected councilmen and an elected Town Supervisor, is the legislative body responsible for managing Town operations. Budgeted appropriations for all Town funds totaled approximately $36 million for 2010.
Key Findings
- The Board did not establish policies and procedures governing the use of gasoline credit cards. As a result, there is limited assurance that the $86,455 in gasoline purchases made by Town employees and officials were for proper Town purposes.
- DES maintains fuel disbursement logs that show quantities of fuel dispensed. However, the DES Director did not use the disbursement logs for reconciling perpetual inventory to physical inventory. Therefore, the risk is increased that Town diesel fuel could have been misappropriated for personal use.
Key Recommendations
- Establish policies and procedures for the use of gasoline credit cards that specify which employees are authorized to use the gasoline credit cards, when and how they can use the cards, what documentation is required, and what the employees’ responsibilities are.
- Ensure that employees maintain records of tank readings to properly reconcile diesel fuel purchases with on-hand fuel inventory.
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