Audit Report 12/31/1964 - Laserfiche WebLink

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COMMENTS AND RECOMMENDATIONS Condition of the records was very poor again this year. In addition, none of our previous year's recommendations for transfers were carried out. The transfers and ad- justments are necessary to bring the records to a current status and cover several years. Consequently, the same conditions prevail this year as in the past. The following comments, included in last year's report, are applicable to the current year also: A. Deposits were not made promptly due to the procedure followed whereby the clerk accumulates receipts, turns it over to the treasurer who makes the deposit. Cash should not be allowed to accumulate. We urge that deposits be made with- out delay unless minor amounts are involved. B. We were unable to reconcile monies received from the sale of licenses to bank deposits, due to the lack of information on the receipts and the time that elapsed before making the deposit. A recommendation to aid in correcting this and to avoid additional audit procedures is to include the license number on the receipt. C. The records were not complete or in a condition to begin the audit function. As a result it was necessary to perform certain routine bookkeeping duties, such as totalling and balancing the clerk's records, reconciling the records to the bank balance for the year and determining account names not inserted, etc. This added to the time required by us and required extension of audit- ing procedures to fully satisfy ourselves of the reliability of the records. We Urge that more consideration and time be devoted to maintain the basic and necessary accounting records. Present financial problems of the village are partially attributable to the lack of the above procedures. The $1,559.32 of December monies turned over to the village in March by the previous clerk would not have occurred if proper deposit procedures were followed. In addition, void checks were recorded in the records, deposits were made with no receipts issued, receipts were prepared but the deposit could not be traced to the bank, and receipts were prepared and the deposit made but no entry made in the books. If the records had been maintained currently and the bank properly reconciled, these errors would have been uncovered by the village for immediate correction. The above problems and errors have not precluded us from rendering an opinion that the cash receipts and disbursements are reasonably reflected for the year 1964 when taken as a whole, particularly in conjunction with the March, 1965 deposit ($1,559.32) of 1964 receipts. However, we do not intend to imply that additional errors or omissions may not yet exist or come to light in the future.