The town board has adopted comprehensive procurement policies and procedures that provide guidance as to when items must be competitively bid and when written or verbal quotes should be obtained for purchases not required to be bid. Town officials review and update these policies annually to ensure they provide guidance for officials and employees to follow when bidding is not required by law.
The town has not established a system to ensure that leave accruals earned and used by highway department employees are properly accounted for. Employees maintain their own leave records, including leave balances and recording leave time used and earned, without oversight and independent verification by town officials.
The library did not use competitive methods when procuring goods and services that were not subject to competitive bidding. The board’s adopted purchasing policy did not require officials to solicit competitive proposals prior to engaging the services of professional service providers. In addition, the board did not properly authorize all tuition reimbursements paid to the director.
The board needs to improve internal controls over the claims audit process. Although the clerk-treasurer reviews each individual claim on the abstracts, the board reviews and approves the abstracts without reviewing the actual claims.
The board did not adopt structurally balanced budgets or consistently monitor the budget. As a result, the general fund reported a deficit unexpended fund balance of $18,343 on Dec. 31, 2012. Although fund balance increased to approximately $9,000 in 2013, this amount is insufficient to cover unexpected expenses.
The town clerk did not maintain adequate, accurate and complete records and reports. In addition, collections for clerk fees and real property taxes were not physically secured prior to deposit, were not deposited timely and intact and were not remitted to the appropriate party timely or in the appropriate amounts. Auditors also found that the board did not audit the records of the clerk as required.
The board did not adopt financial policies and procedures addressing cash receipts and disbursements, procurement, or claims processing and review, and has not adopted a written code of ethics. Further, the board did not require the treasurer to provide it with adequate monthly reports that included receipt, asset and liability information.