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page 2 <br /> extra copy of the computerized payroll register substituted for the handwritten <br /> warrant. The Town accountant's function in processing this warrant should be <br /> limited to determining that the salaries paid are properly approved and in the <br /> correct amounts. <br /> The foregoing suggestions if properly implemented could result in at least <br /> j <br /> a20-25% reduction on the workload in the accounting office and contribute <br /> substantially to maintaining the records on a more timely basis. <br /> Condition of Accounting Records <br /> Prior to bidding on the performing of this audit, I was informed by the <br /> Town accountant that the accounting department records were in a current status. <br /> However shortly after starting the audit, I found that the last time the books <br /> were balanced, that is, a trial balance taken, was in October 1975. Further <br /> audit procedures, particularly in the area of cash controls disclosed that in <br /> !!IgiNi,!f Ij <br /> October 1975 the books were not in balance due to posting errors. The <br /> i <br /> significance of this lack of having balanced records is that the reports compiled <br /> from these records have not been prepared from a completed and verified set of <br /> 8 <br /> u <br /> records and could contain material omissions and/or errors. An example of such a <br /> j <br /> result follows. The Town accountant is required to certify in writing that the <br /> Treasurerts quarterly report of cash balances to the State Bureau of Accounts <br /> is in agreement with the accounting records of the town. In January 1976, <br /> Warrant #x-`29 indicated a purchase of a $200,000.00 Certificate of Deposit. This <br /> amount was not posted as an increase in the certificate of deposit account <br /> but was posted as a reduction of the general cash account the result being <br /> I <br /> that the general ledger was out of balance by $20J,000.00 and the certificate of <br /> deposit account was understated by a similar amount. This error was discovered <br /> during our audit and corrected by the Town accountant prior to closing the books <br /> at the end of the June 30, 1976, fiscal year. However on March 31, 1976, the <br /> t <br /> quarterly cas::i report of the treasurer was submitted to the Town accountant and <br />