06/30/1997-FISCAL AUDITS - Laserfiche WebLink

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1. Improve Procedures Over Various Receivables In our testing of the various receivables owed to the Town, we noted the following areas where controls could be improved: Real Estate: The Tax Collector's computer system does not allocate tax pay- ments between the Town and District consistently. As a result, balance due reports do not accurately summarize total receivables due to the Town and to the District. This requires much manual analysis in order for the Tax Collector to reconcile the detail computer reports to control logs, as well as to the Town Accountant's general ledger. We recommend the Town investigate the feasibility of implementing program- ming changes to correct the posting allocation problem. Once corrected, we further recommend that the Tax Collector reconcile control log balances to the ' detail balance due reports and general ledger on a regular quarterly basis. This will provide assurance of the accuracy of general ledger receivable balances. Deferred Real Estate: The Town currently does not have any policies and procedures in place to reconcile deferred real estate receivables with detail balance due reports. As a result, we noted that at June 30, 1997, the general ' ledger balance did not reconcile to an actual list of taxpayers' balances due. We recommend the Town Accountant, Assessors, and Tax Collector establish ' policies and procedures to report all applicable tax deferral activity, and to reconcile balances due on a regular basis. This will result in improved control ' over these receivables and help assure accurate balances are reported in the general ledger. Ambulance: The Fire Department currently has been authorized to abate ' uncollectable ambulance receivables, however, we noted that receivables in excess of Medicare/Medicaid reimbursements, and certain other uncollectable ' accounts, have not been written off for an extended period. 3