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Page 6 <br /> Town Treasurer' s Department <br /> The department of the town treasurer consists of the town treasurer, assistant <br /> treasurer and two clerks. My tests of transactions in this department were <br /> numerous and indicated that there is a high degree of efficiency in handling of <br /> the town funds and that receipts as reported by other departments in the town are <br /> promptly deposited. Excess cash has been invested in savings and investment <br /> accounts and has earned interest for the town. <br /> There are, however, areas where there are no controls over the treasurer' s <br /> handling of funds which could provide an opportunity for misuse of funds. <br /> There is no control to determine that all receipts received from the State <br /> Treasurer are properly deposited by the town treasurer because the State is not <br /> following the procedure required by law that they notify the town accountant <br /> directly of any payments to the town. The town accountant receives notice <br /> from the town treasurer of amounts received from the State. This does not <br /> establish a control over the treasurer and should be corrected. To further <br /> create opportunities for mishandling of funds, the treasurer' s department where <br /> all cash is received and all checks are drawn and signed receives and reconciles <br /> the monthly bank statements. Good financial control over use of funds provides <br /> for separation of duties in such a way that an internal check is in operation <br /> that will immediately highlight any discrepancies. The amount of money being <br /> received by the town without accounting control makes the foregoing comments <br /> quite serious and at least the following controls should be initiated by the <br /> town. <br /> The function of reconciling monthly bank statements should be transferred <br /> from the treasurer' s department to the town accountant. Monthly reconciliation <br /> of the bank statements should be supplemented by a proof of to6al receipts and <br /> total disbursements shown on the bank statements with receipts and disbursements <br /> shown on the accounting records. A simple reconciliation of the monthly <br />