The Board appoints a Treasurer who acts as the District’s chief fiscal officer. The Treasurer isresponsible for the receipt and custody of District funds, for disbursing and accounting for thosefunds, for preparing monthly and annual financial reports, and for meeting any other reportingrequirements.We examined the internal controls over the District’s financial operations for the period January1, 2010, to April 30, 2012. We interviewed appropriate District officials and reviewed financialrecords and Board minutes. We conducted this performance audit in accordance with generallyaccepted government auditing standards. Those standards require that we plan and perform theaudit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings andconclusions based on our audit objective. We believe that the evidence obtained provides areasonable basis for our findings and conclusions based on our audit objective.
The Board is responsible for overseeing the District’s fiscal activities and safeguarding itsresources. To fulfill this duty, it is essential that the Board establish a system of internal controls,which consists of policies and procedures that ensure transactions are authorized and properlyrecorded; that financial reports are accurate, reliable, and filed in a timely manner; and that theDistrict complies with applicable laws, rules and regulations. The Board is also responsible forperforming a thorough audit of claims before they are paid to ensure that District funds are usedfor only legitimate District expenditures.The Treasurer must maintain complete, accurate and timely records to account for all of theDistrict’s financial activities properly. It is also important for the Treasurer to prepare and submitmonthly reports to the Board. These reports are an important fiscal tool, which provide the Boardwith the information necessary to monitor District operations.An annual budget, sometimes referred to as the operating budget, details the District’s financialplan for a fiscal year. In accordance with Town Law, the Board is required to prepare and adoptan annual budget within a prescribed timetable and, in doing so, determine the amount of realproperty taxes to be raised by the District. It is important that the Board adopt budgets thatinclude realistic estimates of revenues and expenditures.We found that the Board generally does not provide adequate oversight of District financialactivities. The Treasurer does not submit consistent monthly financial reports to the Board,
andthe Board does not appropriately prepare and monitor their annual budgets.Due to these deficiencies, we reviewed all cash disbursements for our scope period, and tested all585 cash disbursements for January 1, 2011, to March 31, 2012, totaling $634,717. We alsoreviewed all bank statement activity for our audit period, ensured that any non-check withdrawals were appropriate, and reviewed bank reconciliations for January 2011 throughMarch 2012. Generally, we found that financial activity was properly recorded and supported,and disbursements were for valid District expenditures.
The Treasurer does not submit monthly reports to the Board during the months of January through April. Instead,the reports are provided to the Board all at once in May.