New York State’s Comptroller’s Office releases the results of an audit of the Town of Jay Finances.. The Purpose of Audit to review the Town’s internal controls over user charges from January 2011 through March 31, 2012. The Town of Jay’s budget appropriations for the 2012 fiscal year are about $2.32 million and the Comptroller found some basic issues including the lack of comprehensive written policies and procedures to provide adequate guidance and internal controls over water and sewer user charges with what the Comptroller calls minimal oversight. Comptroller Thomas DiNapoli says in his report that The town’s Board has not formally adopted the water and sewer rates – adjustments are made to accounts with no support for the changes, collection dates for cash receipts are not documented and with most audits, the comptroller complains that deposits are not made in a timely manner, and no one is reconciling the water and sewer billing control accounts and the detail records.
The auditors job, is by it’s very nature to find errors and to make recommendations to the municipality and in this case they recommended Establishing written policies and procedures to provide adequate guidance and internal controls over billing, collecting, adjusting, and depositing user charges, and reconciling user charges between control account balances and detail accounting records.
They’ve also recommended Establishing and approving a schedule of water and sewer rates to be charged to customers for water and sewer services. The recommendations also included a suggestion that the Board review and approve all adjustments made to customers’ accounts and ensure that they are adequately documented, or designate someone independent of billing and collections to perform those functions. The Comptrollers office also recommended to the Town of Jay Board that they make changes to the billing stubs and ensure that receivable control accounts are kept up to date to avoid any long term discrepancies and assure they are promptly resolved.
As far as the Comptroller goes, this particular audit of the Town of Jay’s internal controls could be characterized by some as having received a relatively good grade.. with some minor adjustments to procedure..