Audits of Local Governments and School Districts
Village of Bayville – Board Oversight and Selected Financial Operations (2012M-143)
Released: October 26, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine the Board's oversight and the Village's internal controls over selected financial operations for the period June 1, 2010, through October 31, 2011.
The Village of Bayville is located in the Town of Oyster Bay, Nassau County. The Village is governed by an elected Board of Trustees which consists of a Village Mayor and six trustees. Total general fund expenditures for 2010-11 were $5 million and total budgeted expenditures for 2011-12 were $5.2 million.
- The Board did not properly audit all claims prior to payment. As a result, six of 25 claims that we reviewed totaling $4,349 had no signature by a Village official to attest that the goods and services were received. In addition, 11 of 25 checks totaling $7,057 were paid and cashed by the vendors prior to the audit of the underlying claims.
- Budget transfers were posted into the accounting records up to 34 days before they were approved by the Board, 11 transfers totaling $177,670 were done after the end of the fiscal year, and 21 of 25 budget account codes were over-expended by $46,838 prior to the transfers being made.
- The Village did not use competitive methods when acquiring professional services because the Board adopted a procurement policy that did not address professional services.
- The Village paid an individual $46,149, as an independent contractor, to perform code enforcement duties. The Village may not contract with a private party to perform Village functions that involve the performance of police powers or other discretionary functions.
- Conduct a thorough audit of claims prior to payment.
- Ensure that budget transfers are made to prevent budget codes from becoming over-expended, and that they are approved before they are posted to the accounting records.
- Consider including a requirement in the procurement policy that competition be used when selecting professional service providers.
- Review with counsel the Village's relationship with the individual performing the code and safety enforcement functions on behalf of the Village.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: firstname.lastname@example.org
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236