Purpose of Audit

The purpose of our audit was to examine the Board’s oversight of Town financial activities for the period January 1, 2015 through December 16, 2016.

Background

The Town of Lincklaen is located in Chenango County and has a population of approximately 400. The Town is governed by an elected five-member Town Board. Budgeted appropriations for the general and highway funds for 2017 totaled approximately $535,000.

Key Findings

• The Town accumulated significant fund balance in the general and highway town-wide funds without clear plans to use this money.
• The Board did not annually audit the records of the Supervisor, Town Clerk/Tax Collector or Justice.
• The Board and Supervisor did not establish and implement necessary controls over the disbursement process to safeguard Town money.

Key Recommendations

• Adopt a comprehensive fund balance policy and use excess funds as a financing source in a manner that benefits Town residents.
• Perform annual audits of the records of all Town officials who receive and disburse funds.
• Establish and implement internal controls to lessen the risks associated with the lack of segregation of duties in the disbursement process.