Village of Akron – Selected Financial Activities (2016M-133)

Issued Date
August 26, 2016

Purpose of Audit

The objective of our audit was to review the Village’s water operations and the Clerk-Treasurer’s records and reports for the period June 1, 2014 through December 22, 2015.

Background

The Village of Akron is located in the Town of Newstead in Erie County. The Village, which has a population of approximately 3,000, is governed by an elected five-member Board of Trustees. The annual budget for the 2015-16 fiscal year was approximately $6 million.

Key Findings

  • We reviewed water and sewer billings to 53 customers and found that seven were underbilled by more than $85,000.
  • The Clerk-Treasurer did not maintain complete or accurate accounting records and reports.
  • The Village had insufficient cash to fund its operations and the continued use of temporary debt financing and interfund loans distorts the actual cash needs of the individual operating funds and hinders the development of long-term solutions.

Key Recommendations

  • Bill both water and sewer customers based on accurate meter readings and Board-approved rates and in a timely manner.
  • Ensure that all financial activity is recorded timely and accurately in the accounting records.
  • Prepare accurate and conservative budgetary projections; provide the Board with monthly cash flow analyses reflecting actual and projected monthly receipts and disbursements and resulting cash balances; and discontinue making unauthorized interfund loans.