State audit critical of Mamakating bookkeeping

ALBANY – The State Comptroller’s Office has found fault with some of the Town of Mamakating’s bookkeeping practices.
The audit was for the period January 1, 2014 through January 23, 2015. The state officials said interfund advances reported in the annual financial report as of December 31, 2014 erroneously totaled more than $1.2 million because cash balances for the town-outside-village general and highway funds continued to be reported in the town-wide funds.
The review also said that while the 2014 annual financial report correctly showed reserved cash that agreed with the town’s reserve fund balances, the bookkeeper did not record the transfer of those funds to the reserves in a timely manner or record town-outside-village general and highway fund cash balances in the accounting records.
It also said the board did not have accurate information on which to base its annual budgets, making it difficult for town officials and other interested parties to evaluate the town’s financial condition.
Among the key recommendations of the auditors were that the town use interfund advances only when an operating fund is in need of short-term cash and ensure interfund advances are properly reconciled throughout the year and repaid prior to the year-end as required; that the town ensures the bookkeeper transfers money to reserve funds in a timely manner; and that adequate oversight of and monitor of the town’s overall financial condition is provides by developing long-term plans that include fund balance and reserve fund goals, reviewing accurate up-to-date financial reports and developing realistic budgets in conjunction with the goals and results of operations.