Town of Frankfort - Board Oversight (2018M-58)

Issued Date
June 08, 2018

[read complete report - pdf]

Audit Objective

Determine whether the Town Board (Board) provided adequate oversight over financial activity and ensured receipts were deposited and disbursements were supported and authorized.

Key Findings

  • The Board did not establish compensating controls to help oversee the former Supervisor’s work.
  • Our tests of check disbursements totaling $1.4 million disclosed three payments totaling $36,380 that did not contain adequate support. In addition, one employee was overpaid $1,100 and detailed time records were not maintained to support $1,922 in hourly wages paid to another employee.
  • The Board did not properly authorize health insurance benefits averaging $183,000 annually for elected officials in 2016 and 2017.

Key Recommendations

  • Segregate the Supervisor’s financial duties or establish sufficient compensating controls to provide oversight.
  • Ensure that claims are retained and include proper supporting documentation before authorizing payment.
  • Authorize all fringe benefits provided to all officials and employees.

Town officials agreed with our recommendations and indicated they plan to initiate corrective action.

1 Refer to our prior audit report, Town of Frankfort – Supervisor’s Fiscal Responsibilities (2017M-192), issued in 2017.

2 The former Supervisor and other prior supervisors