1992-1998-FISCAL AUDITS - Laserfiche WebLink

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i Improve Capital Proiect Cash Flow Proiections I: The Town undertook short-term borrowing (bond anticipation notes) for road improvement projects during fiscal year 1993 that were based on cash flow projections that proved to be inaccurate both in timing and cash requirements. This �1 Y !! tk resulted in the Town borrowing more funds than were ultimately required. The I resulting excess interest cost will be passed on in the form of increased betterments. We recommend that, at the departmental level, more accurate cash flow projections be prepared taking into consideration both the timing and cash requirements that 1 capital project subject to short term borrowing will require. More accurate cash flow forecasting for capital projects will minimize short-term borrowing requirements and the associated costs. I -.: Establish Policy to Avoid Duplicate Payments , i We found that the Town does not have a policy of cancelling invoices (i.e. stamping/marking "paid" and dating) upon payment. The lack of such a policy increases the risk of duplicate payments to vendors. .i' We recommend that all invoices be cancelled when paid. This practice will greatly reduce the possibility of making duplicate payments. Perform Internal Audits ii 3� Massachusetts General Laws requires that the Town Accountant annually verify the ;k cash balances of all departments authorized to receive cash. This provides additional assurance that internal controls are working properly. c`4P' 4 We recommend that the Town Accountant establish procedures to perform an annual verification of cash for all departments authorized to receive cash. This will result in compliance with state statutes and will improve the internal controls over all departmental receipts. yi - 3 - i