06/30/1976-FISCAL AUDITS - Laserfiche WebLink

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"Page 3 was certified as being in agreement with the accounting records which it was not due to the posting error of $200,000.00. The purpose of this certification is to insure that controls over the Town Treasurers s handling of cash are being main— tained and it is certainly obvious that at this point they were not. The primary assets to be controlled by maintaining ledgers are cash and investments, taxes receivable, tax titles and possessions, and other assets receivable. My preliminary inquiries into these areas indicated that controls were being maintained however my audit showed that they were not. Taxes receivable are recorded in a separate account for each type of tax and year committed. The Collector of Taxes is responsible for collecting these taxes and determining that only those collected or properly abated are removed from the records. The Town accounting department is responsible for maintaining a control of these taxes through the accounting records and for determining at regular intervals that the total value of the unpaid tax bills held by the collector is in agreement with the controls. There is no procedure currently An effect in the town for maintaining such a control. It is my feeling from observing the operations of the departments involved that the reason for not making these controls work is lack of definitive responsibilities and a central authority that sets responsibility and requires reporting of compliance with instructions. I recommend that in order to provide assurance that the assets of the town are properly protected through efficient record keeping and that reports prepared by or certified by the accounting department be based on completed records that the following procedures be initiated. That the board of selectmen or a committee or person designated by them prepare a schedule of duties of the accounting department and a time schedule for completion of various duties. The board should then give definitive authority to such a committee to determine at regular intervals that such duties are being performed by examination of supporting records and reconciliations.