06/30/1997-FISCAL AUDITS - Laserfiche WebLink

Home Browse Search

' We recommend the responsibility of issuing abatements of ambulance receivables be that of the Board of Selectmen and/or a designee. This will result in an improved segregation of duties, minimizing the risk that errors or irregularities could occur and go undetected. We further recommend this ' abatement process, as well as reconciliations with the general ledger, be performed on at least a quarterly basis. This will provide assurance that the ' general ledger balances are accurate and reflect only appropriate collectable balances. ' 2. Formalize Controls Over School Custodial Account There is currently some confusion over which department is responsible for approving payroll, billing third parties, and monitoring activity related to the school custodial agency account. As a result, in fiscal year 1997, the account went into a deficit of approximately $ 2,000. We recommend the Town clarify the responsibilities of the School Department and/or Leisure Services Department to assure that proper monitoring of the school custodial account occurs on a regular basis. We further recommend the Town perform an analysis of fiscal year 1997 activity to determine the cause of the deficit, and provide for corrective action to eliminate the deficit. 3. Establish Formal Departmental Receipt Policy Statement The Town currently does not have formal written policies and procedures for departments to follow for collecting and remitting departmental receipts. Although we did not detect any errors and irregularities during our audit, the lack of formal policies and procedures increases the risk that such situations could occur and go undetected. We recommend the Town establish formal written departmental receipt policies ' and procedures. These policies and procedures should address, at a minimum, the following: the uniform format of receipt records and receipt logs, establish- , a