Purpose of Audit

The purpose of our audit was to determine whether Justice Court funds were collected, recorded, deposited, disbursed and reported in a proper and timely manner, and whether internal controls over credit cards and employee reimbursements were adequately designed and operating effectively for the period January 1, 2015 through October 31, 2016.

Background

The Town of Chester is located in Warren County. The Town, which is governed by an elected five-member Town Board, has a Justice Court with one elected Justice. Budgeted appropriations for 2017 total approximately $4.4 million.

Key Findings

• The Justice’s cash exceeded known liabilities for each of the 22 months in our audit period by an average of $15,700.
• Employees made 12 credit card purchases without receipts totaling $1,916 and were not required to obtain prior authorization to make 204 reimbursed purchases totaling $9,078.

Key Recommendations

• Determine why the Justice’s cash exceeds known liabilities and remit any unidentified funds to the Office of the State Comptroller’s Justice Court Fund.
• Adopt policies and procedures that limit the use and reimbursement of personal funds used for Town purchases.